Comments on: The Great Reset http://www.behaviorgap.com/the-great-reset/ Exploring the relationship between people and their money. Tue, 09 Mar 2010 06:52:18 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: Declines in Home Prices & Consumer Spending are GOOD THINGS | Seattle Bubble — News & discussion about real estate & the housing bubble in the Seattle area. http://www.behaviorgap.com/the-great-reset/comment-page-1/#comment-877 Declines in Home Prices & Consumer Spending are GOOD THINGS | Seattle Bubble — News & discussion about real estate & the housing bubble in the Seattle area. Tue, 19 Jan 2010 03:51:18 +0000 http://www.behaviorgap.com/?p=736#comment-877 [...] The Great Reset [...] [...] The Great Reset [...]

]]> By: clubpenguincheats http://www.behaviorgap.com/the-great-reset/comment-page-1/#comment-916 clubpenguincheats Tue, 11 Aug 2009 12:18:12 +0000 http://www.behaviorgap.com/?p=736#comment-916 We need though to build a strong foundation for the future - which will be very different than today in unpredictable ways. But trying to get consumers spending again and ivnesting to keep the status quo functioing is exactly the wrong approach for financial sustainability. We need though to build a strong foundation for the future – which will be very different than today in unpredictable ways. But trying to get consumers spending again and ivnesting to keep the status quo functioing is exactly the wrong approach for financial sustainability.

]]> By: clubpenguincheats http://www.behaviorgap.com/the-great-reset/comment-page-1/#comment-585 clubpenguincheats Tue, 11 Aug 2009 05:18:12 +0000 http://www.behaviorgap.com/?p=736#comment-585 We need though to build a strong foundation for the future - which will be very different than today in unpredictable ways. But trying to get consumers spending again and ivnesting to keep the status quo functioing is exactly the wrong approach for financial sustainability. We need though to build a strong foundation for the future – which will be very different than today in unpredictable ways. But trying to get consumers spending again and ivnesting to keep the status quo functioing is exactly the wrong approach for financial sustainability.

]]> By: ghina http://www.behaviorgap.com/the-great-reset/comment-page-1/#comment-583 ghina Mon, 10 Aug 2009 18:52:51 +0000 http://www.behaviorgap.com/?p=736#comment-583 What if it isn't a zero sum game? I tend to think of leverage as having "faith" in a growing economy. Now in the last 10 years with China's contribution, the world economy really did grow didn't it? So maybe leverage expanded at a greater rate and expectations became unreasonable. But what if BRIC continues to pump up the world economy, ie create a bigger pie. In that case the higher growth was/is real.<br><br>How can we differentiate between real and overestimated economy? What if it isn't a zero sum game? I tend to think of leverage as having “faith” in a growing economy. Now in the last 10 years with China's contribution, the world economy really did grow didn't it? So maybe leverage expanded at a greater rate and expectations became unreasonable. But what if BRIC continues to pump up the world economy, ie create a bigger pie. In that case the higher growth was/is real.

How can we differentiate between real and overestimated economy?

]]> By: thinkingcarl http://www.behaviorgap.com/the-great-reset/comment-page-1/#comment-68 thinkingcarl Wed, 27 May 2009 04:10:17 +0000 http://www.behaviorgap.com/?p=736#comment-68 Now the question is we will stay so hyper-focused on "reviving" the economy<br>or if we will take the hard medicine and reset.... Now the question is we will stay so hyper-focused on “reviving” the economy
or if we will take the hard medicine and reset….

]]> By: thinkingcarl http://www.behaviorgap.com/the-great-reset/comment-page-1/#comment-414 thinkingcarl Wed, 27 May 2009 02:10:17 +0000 http://www.behaviorgap.com/?p=736#comment-414 Now the question is we will stay so hyper-focused on "reviving" the economy<br>or if we will take the hard medicine and reset.... Now the question is we will stay so hyper-focused on “reviving” the economy
or if we will take the hard medicine and reset….

]]> By: dustinjruybal http://www.behaviorgap.com/the-great-reset/comment-page-1/#comment-69 dustinjruybal Sun, 24 May 2009 23:58:03 +0000 http://www.behaviorgap.com/?p=736#comment-69 Then, for whatever reason, we decided that it was not enough, and we put some very smart people, who should be working on cancer research in a back room, and had them “engineer” complex tools to leverage what we were producing, so we could spend more. This is where we got the <a href="http://www.thrift-savings-plan.net" rel="nofollow">thrift savings plan</a> “Real Economy” on top of a giant expanding cloud of “Leverage.” But we were not actually increasing the total value of goods and services produced! One day something happened, and the “Leverage” went away. Just like that we are back to the “Real Economy.” Then, for whatever reason, we decided that it was not enough, and we put some very smart people, who should be working on cancer research in a back room, and had them “engineer” complex tools to leverage what we were producing, so we could spend more. This is where we got the thrift savings plan “Real Economy” on top of a giant expanding cloud of “Leverage.” But we were not actually increasing the total value of goods and services produced! One day something happened, and the “Leverage” went away. Just like that we are back to the “Real Economy.”

]]> By: dustinjruybal http://www.behaviorgap.com/the-great-reset/comment-page-1/#comment-413 dustinjruybal Sun, 24 May 2009 21:58:03 +0000 http://www.behaviorgap.com/?p=736#comment-413 Then, for whatever reason, we decided that it was not enough, and we put some very smart people, who should be working on cancer research in a back room, and had them “engineer” complex tools to leverage what we were producing, so we could spend more. This is where we got the <a href="http://www.thrift-savings-plan.net" rel="nofollow">thrift savings plan</a> “Real Economy” on top of a giant expanding cloud of “Leverage.” But we were not actually increasing the total value of goods and services produced! One day something happened, and the “Leverage” went away. Just like that we are back to the “Real Economy.” Then, for whatever reason, we decided that it was not enough, and we put some very smart people, who should be working on cancer research in a back room, and had them “engineer” complex tools to leverage what we were producing, so we could spend more. This is where we got the thrift savings plan “Real Economy” on top of a giant expanding cloud of “Leverage.” But we were not actually increasing the total value of goods and services produced! One day something happened, and the “Leverage” went away. Just like that we are back to the “Real Economy.”

]]> By: Kristen http://www.behaviorgap.com/the-great-reset/comment-page-1/#comment-61 Kristen Wed, 18 Feb 2009 20:31:44 +0000 http://www.behaviorgap.com/?p=736#comment-61 Love this post. My sentiments exactly. Elizabeth Warren gave a fantastic lecture about the disappearing middle class. Her data showed that while income and consumer spending has been stagnant over the post-war period, housing prices have increased exponentially. It pains me to hear government talk about stopping foreclosures and keeping people in their homes. I'm not cold-hearted, of course I don't want to see people lose their homes. But housing prices became insanely over-inflated. If we allow bankruptcies and foreclosures to happen, without government stepping in with a band-aid, then the housing market will reset. I am an office worker, my husband a teacher, we make an equal, fair salary, and during the height of the housing boom, unless we got into one of these crazy ARMs, all we could afford was a 400 square foot studio. That is not a long-term investment that we could start a family in. I for one would really like to see the housing market re-set, so that young, middle-class couples can afford to purchase a starter home (a real starter home, not one of these 2500 square foot mcmansions) and start a family. Elizabeth Warren's lecture given at Berkeley: http://www.youtube.com/watch?v=akVL7QY0S8A Love this post. My sentiments exactly. Elizabeth Warren gave a fantastic lecture about the disappearing middle class. Her data showed that while income and consumer spending has been stagnant over the post-war period, housing prices have increased exponentially. It pains me to hear government talk about stopping foreclosures and keeping people in their homes. I’m not cold-hearted, of course I don’t want to see people lose their homes. But housing prices became insanely over-inflated. If we allow bankruptcies and foreclosures to happen, without government stepping in with a band-aid, then the housing market will reset. I am an office worker, my husband a teacher, we make an equal, fair salary, and during the height of the housing boom, unless we got into one of these crazy ARMs, all we could afford was a 400 square foot studio. That is not a long-term investment that we could start a family in. I for one would really like to see the housing market re-set, so that young, middle-class couples can afford to purchase a starter home (a real starter home, not one of these 2500 square foot mcmansions) and start a family.

Elizabeth Warren’s lecture given at Berkeley: http://www.youtube.com/watch?v=akVL7QY0S8A

]]> By: Joel Goodman http://www.behaviorgap.com/the-great-reset/comment-page-1/#comment-63 Joel Goodman Mon, 16 Feb 2009 16:51:58 +0000 http://www.behaviorgap.com/?p=736#comment-63 This is how capitalism works. If someone takes advantage of the system, it resets itself. Things get fixed. It might be uncomfortable for a time, we may be poorer, but there are consequences for actions and sometimes they affect other people. But see, the issue is that so many supporting the current "fix" don't believe in capitalism, don't believe in being uncomfortable, and won't accept that "change" they thought they were voting for. Selfishness still pervades, and that's why the "Great Reset" won't happen. It's par for the course for the US to disregard lessons it should've learned from its history in favour of *new* ideas for *new* problems. These aren't new problems at all. They're the same old problems dressed up differently. We spent more than we had and now we're going to spend even more money to fix that? There's a reality disconnect someplace in there. This is how capitalism works. If someone takes advantage of the system, it resets itself. Things get fixed. It might be uncomfortable for a time, we may be poorer, but there are consequences for actions and sometimes they affect other people.

But see, the issue is that so many supporting the current “fix” don’t believe in capitalism, don’t believe in being uncomfortable, and won’t accept that “change” they thought they were voting for. Selfishness still pervades, and that’s why the “Great Reset” won’t happen.

It’s par for the course for the US to disregard lessons it should’ve learned from its history in favour of *new* ideas for *new* problems. These aren’t new problems at all. They’re the same old problems dressed up differently. We spent more than we had and now we’re going to spend even more money to fix that? There’s a reality disconnect someplace in there.

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