Comments on: Black Coffee: My Favorite Blogs, Money News & Opinions #18

By: Len Penzo

Len Penzo — Sun, 25 Oct 2009 16:21:18 +0000

@Sam: You definitely are good at finding the silver lining in a dark cloud! lol

@MB: You’re very welcome. I am in complete agreement with you.

By: mbhunter

mbhunter — Sun, 25 Oct 2009 03:06:18 +0000

Thanks very much for the link and the tweet!

I expect we’re just seeing the start of the fallout for this.

By: Financial Samurai

Financial Samurai — Sun, 25 Oct 2009 00:16:37 +0000

I agree Len. Frankly, I don’t really know many who did horribly in this downturn, and who aren’t reaping the rewards of the rebound! 10% unemployment means 90% employment by definition. Just don’t include the underemployed.

Let the bull market rock on!

By: Len Penzo

Len Penzo — Sat, 24 Oct 2009 23:32:57 +0000

But, Sam, my personal experience does not disprove my point at all. In fact, for me to claim that everything is okay because I (or other people I know) am/are doing well financially is merely argument by anecdotal evidence, which is pointless.

BTW, I was doing well before the last recession hit too. If we extend the anecdotal evidence to how I was doing then, the economy should never have hit the skids in the first place.

By: Financial Samurai

Financial Samurai — Sat, 24 Oct 2009 17:59:17 +0000

Hi Len – Thnx for your thoughts. Actually, the start of your 2nd paragraph is EXACTLY why I wrote my post in Friday at Financial Samurai.

You say “Most people are still in debt up to their eyeballs.” Are you drowning in debt? Because I’m not drowning in debt either. Are you doing well with this recovery? I bet you are, and frankly so am I. When we write “other people” or “most people”, we’re simply talking about ourselves! And if we ourselves are all fine, then all is fine because we are “most people.”

I hope you can have a read of my post and share your thoughts. Frankly, the large majority of people I know are really gaining from this rebound. How could they not?

The patient is walking again and enjoying the sunshine.

By: Len Penzo

Len Penzo — Sat, 24 Oct 2009 16:23:57 +0000

@Sam: There is no doubt that the economy is recovering somewhat. Let me use a simile: let’s compare the economy to a hospital patient. Late last year the patient was in intensive care. Today I would say the patient is out of ICU – thanks to a massive transfusion (i.e., stimulus money, bailouts, government involvement to prop up housing) – and sitting up in bed and eating soup (although it is still in the hospital). Now, did the transfusion kill the underlying disease that put the patient in ICU, or did it only mask the symptoms? I say it only masked the symptoms and when the transfusion is exhausted the patient is going to be right back in ICU.

Most people are still in debt up to their eyeballs – they are not going to be able to spend like they did during the last economic expansion. Many banks and other companies that were performing poorly are still solvent today only because of government bailouts; they are still fundamentally screwed up. Meanwhile, the effects of the housing bubble have been greatly tempered, for now, by the government. More trouble is coming there, especially with respect to the commercial side of real estate – that is the other shoe there, so to speak.

@Susan: You are very welcome! I sent you a private e-mail on how I would set up your contest!

By: Susan Tiner

Susan Tiner — Sat, 24 Oct 2009 14:56:42 +0000

Thank you for introducing the soap opera! I love the idea of a contest though I have no idea how to set one up for a blog.
Susan Tiner´s last blog ..Financial Organizing Soap Opera Episode #1

By: Financial Samurai

Financial Samurai — Sat, 24 Oct 2009 08:13:10 +0000

Thnx for the run down Leo.

Do you really not believe the economy is back with all the great earnings results for 3Q09 so far? I see it everyday at restaurants and department stores.
Financial Samurai´s last blog ..Six Figure Incomes & Unemployment – Challenging Reality By Engaging The Community