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|User Info||In-Your-Face Felonies, Willfully Ignored; entered at 2019-04-25 18:24:11|
The folks that were destroyed in 2000 or 2008 were folks with excessive leverage. Anybody just living a normal life with a regular portfolio of stocks and bonds saw a brief downturn and then recovered. Speculators got destroyed. But that is different from the "canned food, guns, and ammunition" type scenario that is discussed as a doomsday outcome. Can it happen--it certainly can, but at some point preparing for that type of outcome is not meaningful. It would be akin to buying expensive flood insurance in an area that hasn't experienced a flood in the last 100 years.
We do prepare for normal/likely things that are likely to come up during a journey. We don't prepare for a volcanic eruption or being hit by an asteroid. In this scenario, the preparation is living within one's means without excess leverage. At one extreme one can be over-leveraged buying stocks and real estate and living extravagantly. At the other extreme one can trying to live "off the grid" and accumulating resources for a doomsday scenario when currency no longer works. I'm talking about being somewhere in the middle.