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Resource Capital Corp. Message Board

  • mysonchino mysonchino Aug 31, 2010 5:19 PM Flag

    It is starting to happen

    I read many of the posts in regard to many different investments and I have noticed something. Rather than wild pumping or desperate complaining I am starting to read some fairly thoughtful and balanced posts. There seems to be an acknowledgement that while things are not going to get significantly better they also are not going to implode. This is healthy but not what I find truly interesting.

    People are actually starting to understand that life as we know it is not that bad, and they are right. We have lived excessively above out means for the past 25 years as globalization was denied and debt was used to "maintain the dream". I particularly liked the post I read from "Wallstreet" (I think it was him) that talked about a 100,000 income family now making 90,000. They adjust and life isn't so bad. As soon as Americans realize we are all in the same boat and "adjust" their expectations it will not seem like we are in a Zombie society.

    Quit waiting for the "good old days" to return. They were really never here. It was a debt induced illusion or hallucination. Growth is growth. Growth without inflation is real growth and things are not that bad.

    Need money? Share a ride. Quit eating in restaurants, buying frozed food and forget about the designer coffee, cloths and clubs. Suck it up and plan life in the "new normal"

    What does this have to do with the stockmarket? Buy dividend paying stocks. Spend les than you earn. Invest the difference in dividend paying stocks until you no longer have to work. Quit hoping to get rich quick and be thankful that the opportunity to get rich slow exists.

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    • How about Dwayne Hoover, from Breakfast of Champions?

    • You're thinking of another character named Ruumford.

    • srmedusa@sbcglobal.net srmedusa Aug 31, 2010 11:27 PM Flag

      "Invest the difference in dividend paying stocks until you no longer have to work". That is exactly what I have been trying to do for the last 5 years, however, thanks to BS stocks like PFE, BAC, GE, ADVDX, the dividends got slashed, and hampered my strategy. The trick is to find dividend paying stocks that won't slash their dividend when the going gets tough.

      • 1 Reply to srmedusa
      • I'm one of the lucky ones. Although having been laid off almost ten years ago with nearly twenty years to go until retirement at that time, I had enough of a next egg in a 401K plan to switch over to a brokerage IRA account and invest in higher yield dividend stocks. I haven't worked since I was laid off.

        Having always lived within my means, not acquiring excessive debt nor taking out any second mortgages, I have been able to pay off my house mortgage early and have no debt. With about $46K a year in dividends coming in from my stocks, I can reinvest about $15K a year and still live fairly well off the remainder. The $15K a year reinvested into additional higher yield dividend stocks will hopefully increase my dividend income every year.

    • "People are actually starting to understand that life as we know it is not that bad, and they are right. We have lived excessively above out means for the past 25 years as globalization was denied and debt was used to "maintain the dream". I particularly liked the post I read from "Wallstreet" (I think it was him) that talked about a 100,000 income family now making 90,000. They adjust and life isn't so bad. As soon as Americans realize we are all in the same boat and "adjust" their expectations it will not seem like we are in a Zombie society."

      Hmm I am in the aviation industry. Pilots, mechanics, ticket agents etc... most companies went though bankrupcies people lost retirements lost careers or went back to work at much lower wages. We are talking an average across the board 40% loss in pay not 10% as in the above example. This includes lost benefits as well as wages. Like health insurance.

      This drop has been large enough to force most out of their current home at a time when the home is worth in many cases less than what they owe. For everyone that I know in this group nothing is starting to happen. Many are in a very bad spot and still see no way out.
      No chance that their incomes will ever return and no way out of current debt except to file bankrupt themselves.

      Of course I am only looking at my industry.
      Maybe others are doing better and the 10% drop is a national average? If so then many must be doing much better than the average no?

      • 3 Replies to momenttrader
      • I wonder how many of those people had clotheslines in their back yards or lived in neighborhoods where such things were scorned?
        How many of those folks had one of those labor-intensive and expensive to operate resource wasting electric dishwashers? How many drew mortgages on homes that were really way more than they needed? How many went the re-fi route at every point drop and pulled a bit of equity out at those times? Tally up all that.

      • Moment,

        Imagine how the buggy whip makers felt when the automobile came out. There are a thousand similar examples.

        The sad thing about your example is the that these employees listened to stories and trusted someone. They trusted the corporations who said trust our pension plan rather than taking cash. They trusted their union bosses who said strike for higher wages and benefits and trust us.

        My father was in a union and Madoff made off with some of their money.

        The same people trust Soc. Sec. The same people trust that Obamacare will help them out.

        It is very difficult for people to learn what Adam Smith tried to teach hundreds of years ago: People are looking out for their own self interest. People in government, people in business, people in unions, people in charity etc. They are ALL looking out for themselves, in one way or another.

        "It is not from the benevolence of the butcher, the brewer, or the baker that we expect our dinner, but from their regard to their own interest."

        Lesson learned is to not be so trusting.

      • Not to mention that unemployment check is only 65% what you are previously making in our State. Therefore, you have to cut 35% what you normally spend in a heart beat.

        I'm in the Financial Industry and we cut 20% of our workforce. We just recently ventured to other countries and hoping to grow outside of the US.

    • Nice and thoughtful.

 
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