Irrational despair?

[jim_p]

Trying to keep a business going in today's economy has one thinking a lot about the current state of affairs...

After reading friends' postings such as this one, I'm starting to wonder if maybe we're in a period of "irrational despair" as opposed to the "irrational exuberence" of the bubble years.  Irrational exuberance says that the gravy train will never stop, this thing will last forever, we're gonna ride this to the top and beyond.  Irrational despair says that not only is the gravy train not moving, it's rusted to the tracks and will never move again.

I've heard other say that they wish the media would shut up already about the bad economy because they're only making it worse.  Part of me dismisses this notion... the media are just reporting on what's going on.  Another part of me, though feels that focusing so heavily on doom-and-gloom does have a reinforcing effect on the cycle of despair that may or may not be warranted.

I just got back from a picture framing conference in Vegas.  Many people talk about how bad it is even there... they focus on the big construction projects that have been stopped.  On the other hand, my daily walk from my hotel to the conference went right by the construction site of a huge new hotel... and that job was not only still going on, it was running three shifts!  Perhaps the casinos weren't packed 24/7, but they weren't ghost towns either.

Point is, there's still economic activity going on and if we stop trying to convince ourselves that it's so dead we'd better get out of the game we stand a chance of keeping it going and perhaps growing again.

Yes, the environment has shifted dramatically... lots of paper assets (and, by extension, perceived wealth) has disappeared.  Okay, that hurts.  It's understandable to sit there in shock for a while while it sinks in.  But there comes a point where we  have to pull ourselves together and take stock of what we *do* have and use it as best we can.

(like, maybe, having something framed and hanging it on the wall?  It'll cheer you up and make you feel better, and you can take on the world! :) )

Comments

[quietann.livejournal.com]

I did have to have a talk with myself late last year about how much I was spending on Feronia, and whether it's worth it. Horses are *such* a luxury item, especially in New England. To save money, I could have pulled her out of training ($725/month), or cut way back on the amount of training she got. Or fixed up the back yard and brought her home. But that wouldn't help either of us.

It's a small contribution to the economy, I guess. There is such a shakeout going on in the horse world, with a lot of people desperate to get rid of horses they can't afford. I sort of feel like if I want that world to continue to exist, it is going to cost me money.

So defiantly in the economic doom and gloom, I spend money on her.

[awfief.livejournal.com]

lots of paper assets (and, by extension, perceived wealth) has disappeared. Okay, that hurts. It's understandable to sit there in shock for a while while it sinks in. But there comes a point where we have to pull ourselves together and take stock of what we *do* have and use it as best we can.

This. I haven't been hit much by this economic downturn/recession/we have no bananas today sir market -- partly that's because Tony and I live well below our means. His workplace is 2 pay periods behind (He got a check for Dec. 15 + Dec. 30 on Jan 10th, and hasn't gotten his Jan 15th paycheck yet and today is....yeah). Granted, we can afford this, and we haven't even changed the way we do things.

Then again, we live in an 800 sq-foot rental apartment, share 1 car, have very inexpensive whims, no children, etc.

But mostly, I'm not hurting because I don't have many paper assets to disappear. I do have a 401(k) which saw a 25% drop, but considering the market took a 50% drop I'm OK with that.

No, actually -- I take it back. we're not hurting because we don't live paycheck-to-paycheck. we keep our "zero line" of our bank account not at zero, but at $5,000. Currently we're usually under that (after bills and such) because of the missing paychecks. But we can float that without a problem.

It is very difficult in the Boston area to live within your means. However, it is possible for most of my friends. We can do it!

[n5red.livejournal.com]

I'm suffering from general depression and despair. I have trouble motivating myself to actually try to succeed.

[benndragon.livejournal.com]

You do realize that the bulk of the shit hasn't even hit the fan yet - we still don't know just how worthless those paper assets are, how many billions have disappeared into the ether, because no one wants to set off *that* particular set of dominoes (even though we won't be able to start rebuilding until we do). Until we find that out, we literally can't take stock of what we do have, much less figure out how to use it to pull us through. In the meantime making sure one's rainy day fund is full before going to the casino is eminently rational (hell, some of us always thought that was rational, but most people need a strong emotional reminder to do the rational thing).