i thought my grandparents were silly by never putting a cent in the stock market. They lost out on millions by keeping their cash in 4-5% CD's; they earned a steady return and did not have any big reductions. They learned the lessons of the great depression. My parent fortunately raised us during the early 80's recession and had $200,000 in debt financed at 15%, the going rate at the time. I complained about Buy-Rite canned soup, sodas, and BoBo brand shoes. But they were definitely ants the whole time, barely making payments some months and paying down principal when there was any money to spare.
These lessons were not only taught at bedtime stories, but in daily practice. There are families who are losing their homes, but still buy their kid a $30 Abercrombie T-shirt that they could get for $5 at Old Navy. Or who buy "organic" food for their children at 2 times the cost. Why should they worry when the government will support policies that will forgive their debts and then send them extra cash in the mail. Don't bet on the market rebounding soon. Until Americans go through some real pain, this mindset will not change. They will call for more government intervention and we are on our way to Communism.
See you guys in Singapore or New Zealand in a few years, now rated the freeest economies in the world!!!
