Interesting Numbers

**Runum** · Apr 25th, 2009, 10:31 AM

Dave Ramsey had a big simulcast/multimedia event this past Thursday called Town Hall for Hope. I believe the intent of the event was to get the public to see that they need to get back in action and control of their lives. I didn't attend the event but was looking at the website today. He has some interesting stats in there:

Town Hall For Hope with Dave Ramsey

These are interesting to me because I lived through Stagflation, wage freezes, and gas lines in the 70's. I remember the double digit mortgage and CD rates of the 80's. I was sitting in a college class in 1987 when the stock market took it's big drop. I just came to the realization that through all of those times I was always too busy to sit around and worry about the bad news.

**MJDeMarco** · Apr 25th, 2009, 02:17 PM

I'm not gonna go into a long diatribe, but numbers can be interpreted anyway you choose. I guess you have to be lucky and pick the right 15 years to invest. I believe those numbers validate that the Slowlane is as risky as any business. Also, I find it interesting inflation is only mentioned when it befits his Slowlane thesis.

When your primary wealth acceleration vehicle is the stock market, be prepared for a long, bumpy ride that takes 50 years to realize. No thanks, I see ya at the finish line -- I'm already there 40 years early.

**Runum** · Apr 25th, 2009, 02:27 PM

Yep, I agree with you about that.

I found the foreclosure data interesting. Kinda reminds me when I visited LA in 2004 and my relatives told me about the cost of their house. I was amazed because, to me, the house did not provide the value for the cost. Also his job barely made the mortgage payment and this was just a run of the mill mid-size 3-2 house without central A/C. I couldn't see how the multiplication of the home values and cost could be sustainable. I knew it would stop eventually but didn't think it would affect the rest of the country. I also didn't know the rapid run-ups were happening in other areas of the country. I didn't have cable TV and didn't watch all the trendy RE shows. Just didn't know how wide spread it was.

I now see it may have been in other states but the majority of the run-ups were in isolated pockets in those states. To me it says a lot that these areas can affect the information the rest of us get. This in turn makes us all feel further beat down even though it's not that bad here.

**hatterasguy** · Apr 26th, 2009, 04:40 PM

Cycle's happen, things are good and than they get slow for awhile, they will get good again.

In a few years we will all be making 1980's money and have another set of problems to worry about. I'd be surprised if I saw another 04-06 in the RE market in my life time, but you never know.

People get to morbid and think the world is coming to an end, human nature.