Since the 6 recessions I have lived through I have figured out what is different about the last one

[NNN0LHI]

This one didn't just effect mostly factory workers like myself as most of the other ones did.

This recession cut deep into the upper middle class. All of the others I recall didn't do that. Those other recessions mostly effected the poor and those just breaking into the middle class.

I have a relative who for decades was well into that upper tier of the middle class. Him and his wife were both real estate agents. They are living in a house that was at one time worth $700,000 dollars. They always did alright. Even through times when I was out of work for up to close to 2 years straight these people were always doing fine. I think that a lot of folks like this relative of mine actually did better when factory workers like myself were out of work during past recessions.

Not this time. Found out that same relative who was always doing fine through the worst of times in the past isn't doing well this time. That $700,000 dollar house is only worth about $270,000 now. Also found out their house went into foreclosure about 6 months ago. No one told me about it either. Found out about it doing some research on the computer.

I mean these people had it all. They were going on regular vacations every few months. They would get back from one vacation and start planning the next. They had horses, motorcycles, a new imported car or two every year. They had all the toys. Well now even these people are going through what I used to go through regularly. Hell, when I was out of work for the better part of 6 years total during the 80's these relatives were living the dream. Never missed a beat. Bad recessions like I lived through never effected then adversely in the slightest. This same relative used to ask me every time I seen him, "Did you get called back to work yet?" He didn't ask me this because he wanted to help or knew of a job, or wasn't aware of my job status. If I had been called back to work he would have been one of the first people to know about it. No, he just liked looking down his nose at me and rubbing in the fact that I was still unemployed.

This recession cut deep into the high end of the upper middles class. A lot deeper than I have ever seen before during my life. Even those that have never been effected by previous recessions are now in financial trouble.

Does this sound about right to anyone else?

Don

[JustAnotherGen]

1. Sort of

I think the Upper Middle class that wanted to *think* they were *wealthy* spread themselves too thin. Technically - I'm upper middle class though with the combined finances of marriage last month - my husband and I are the millionaires next door.

Next door to you we live in an apartment.
We rent that apartment - the wife lived through the tech bubble and thought something was rotten in real estate as early as 2004.
She drives a 2006 Altima - he drives a ten year old Yukon. Both they paid cash for.
They pay as they go. They like nice things but wait for sales.
They have credit cards. When they use them to gather rewards - they are paid off within a day or two.

I'm not being arrogant. I'm showing how high earners - who aren't trying to impress anyone live.

I feel bad for these relatives of yours - but not as bad as I feel for you. They had a gift? Luck? A few breaks? All were squandered by them trying to live "big".


You didn't live big - you did the best you could and are probably far more responsible with your money. That said - I'm AOK with you gloating a little bit about the situation they are in. You'll survive this - but they will never likely bounce back to where terry were. They won't bounce back because the concept of saving their pennies for a rainy day, a house is for living - not an investment, and cars lose their value the minute you take it off the lot.

[malaise]

2. Could not say it better

I'm not being arrogant. I'm showing how high earners - who aren't trying to impress anyone live.

Keeping up with the Jones' and allowing commercials to define who and what we should be has destroyed way too many people.

We change cars between eight and ten years. What we do is service them every six months.
Right now I have at least six people who are waiting for me to sell my eight year old Corolla.

[rational_democrat]

3. ...

I mean the story you just told describes two people who are heavily invested in the real estate market with their jobs and assets. While the housing market was booming they were rolling in cash and when it crashed they were hurting for cash. This is typical for people in those industries and with expensive homes but it is not typical for everyone. For example a upper middle class financial analyst who is 32 and living in an apartment when the crash happened could have had a great chance at keeping his six figure job and snagging a very cheap home on the crash of the market.

[mainer]

4. The real difference: legislative gridlock, politics before the country

I don't recall that we've ever had two parties who hate each other so much that they'd rather the country suffer than the other party win. In eras past, congress would at least try to work together. This recession will not end until the parties pull together and start addressing the economy like adults.

[DCKit]

5. This bubble was grounded in real estate in every way. None of the others were.

It's different this time.

Wall St., the banksters and hedge funds extracted almost $2 trillion of our national wealth via our homes, and nobody's gone to jail.

[GeorgeGist]

6. No Don it doesn't.

Most people in the upper middle class work in something other than real estate.