An unusual recession?

March 20, 2009 at 1:05 pm | Posted in economics, Housing, recession | Leave a comment
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Usually, in a recession, there are people who suffer – people who lose jobs or have their hours cut… Others see the value of their investments fall as well. However, for the majority of people, life goes on as usual. They may cut back a bit, may feel the impact of the markets on their portfolio, but most people don’t have too large a portfolio, especially outside of a 401(k) or IRA, so the impact isn’t immediate. Yes, the 401(k) is down, but it’ll recover by the time I need the money seems to be the mantra.

What may be unusual about this recession is that everybody is hurting. You cannot be complacent about a “safe” job when you have suffered anything from 30% (for those with no or almost paid-off mortgages) to 75% or even greater than 100% loss of equity in your greatest asset – your home.

This is not an event that has happened to some of your neighbors and you hope does not happen to you.  You may still have your job, you may be years from retirement – but the recession has already hurt you – and me, and all of us.

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