Financial Mess Summary From the Smartest Person I Know

06Oct08

I’m pretty lucky to have some pretty smart friends, since I’m a complete idiot about this stuff. So I asked their takes on the economy, and “He-who-shall-not-be-named” aka “B”’s answer was the most straight forward and clear. It definitely gave me new perspective. Hopefully it’ll do the same for you. :)

Btw, “B” is a Stanford Econ grad with an MBA from Wharton. How kind of him to dumb things down for me. ;)

“Guess the way to think about it is we took everything we saved the last few years and instead of putting it into things that grow and make other things (like technology, better food, etc), we put it into something we didn’t need more of: a bunch of tract homes in Antioch. And those don’t give anything back.

It was all well intended and set up for about 10 years — lets give homeownership to more people — make it easier, but like most good govt intentions it backfires. Now we’ve got a blackout and a lot of spoiled food to clean out and repurchase.

Let’s say the good news is regular people wll be able to afford to buy a house for real this time.

No mortgage = you are a queen.” via “He-who-asked-not-to-be-named”

Thanks again, “B”! :)

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