Recessions, Crashes, Y2k, what are your memories?

Discussion in 'Living Room' started by MangoMadness, 30th Mar, 2020.

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  1. MangoMadness

    MangoMadness Well-Known Member

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    Looking back at recessions and market crashes I feel like I have never actually been affected by them, I didnt even really notice them happening at all.

    90-91 recession - I was in the military so very isolated from the outside world
    Y2k/Tech crash - I was on the dole living it up with my mates
    9/11 - Saw it on tv. Apart from nail clippers etc on planes it didnt change my way of life
    2008 Crash - Full time employed and didnt even notice it, I bought my first property around 2008 without a single concern for my job or the crashing markets.

    Im sure these events had significant effects on people in different situations but my life seemed unaffected by them. I hung out at the same shops, with the same people, lived frugally and did the same things I had always done.

    Was I just blissfully ignorant about my surroundings and the world at large or did anyone else feel that the panic surrounding these events were for other people and not themselves?
     
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  2. Dan Donoghue

    Dan Donoghue Well-Known Member

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    90-91 recession - I was in Year 10 in 1990, both my folks had jobs and a relatively small mortgage at the time.
    Y2k/Tech crash - I was working for BT Financial Group, I was on the team to test and update code for anything that may be an issue.
    9/11 - Saw it on tv live. Still working at BT. Woke my mum up and told her we would need to be in early. It was less of an impact on us than we expected.
    2008 Crash - Full time employed in the digital section of the music industry and didnt even notice it. We bought our first house in 2009 with a 100% mortgage.
    2020 Covid crash. I have full time employment, working from home, my super had 60K smashed off it then recovered 20 back so 40K down.
     
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  3. Perthguy

    Perthguy Well-Known Member

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    I worked on y2k to make sure it wasn't a problem. I remember a few stockpiling water, food and batteries for the apocalypse that never came.

    I was affected by GFC when I had a loan approved by the lender but refused by the mortgage insurer. The seller re-listed the property and sold for a higher price, so he eas happy.

    The post boom crash in Perth affected me most when rent for one of my properties dropped from $440 to $270. I was prepared for it though
     
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  4. Lizzie

    Lizzie Well-Known Member

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    None of the crashes really affected me as both hubby and I had secure jobs at the time ... but do remember interest rates being 19+% on our first home. We just hunkered down with our second hand furniture, sheets for curtains, public transport, no carpet and paid it

    The one that really hurt was the mini-bust of 2003/4 - we were mortgaged to the hilt, had just finished a development with the plan to sell - then boom - followed the market down, sold our other 10 IPs to keep afloat ... worked out that one development cost us around $2mil+ in lost capital growth on the IPs we were forced to sell, as well as the physical $300k
     
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  5. Marg4000

    Marg4000 Well-Known Member

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    The scariest for me was the AIDS epidemic in the 1980s.
    You caught that, you died.
     
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  6. The Y-man

    The Y-man Moderator Staff Member

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    I was thinking about this last night, looking at whether truly "this time it is different" to the last big thing I experienced - the GFC (which wiped a seven digit figure off our net worth as told elsewhere...).

    I think this time is *very* different in a sense that the "everyday person" is involved directly. The GFC also affected many many people, but in an indirect way for many - eg superannuation funds etc. I think this crisis is much more "in your face" (or in your lungs?) - toilet paper, groceries, going out, losing jobs, and unfortunately for some I am sure losing a loved one along the way....

    Maybe @Simon Hampel could confirm, but I don't think the GFC generated this sort of discussion on the forum (somersoft back then) as this one has....
    Financially though, we are in a far better situation than where we were in the GFC - so able to sit back and observe, rather than panic and hit emergency manoeuvres. But I can imagine for the less prepared (I don't mean they were "ill prepared" - just less prepared due to the earlier stage of their journeys, or projects etc) this will be a very challenging time.

    I am also seeing the share market and property market being hit simultaneously this time - something I did NOT see happening in the GFC (I know, because we off loaded our IP portfolio for a decent profit during and immediately after it). That's a scary prospect if you think about it, and really nothing but the gold stash is going up in value in my portfolio...

    What will happen on the other side? I have no idea...! What I do know is that the bulk of my net worth since the GFC was built after 2013 ~ so I guess I am happy to miss out on some of the undoubted giga-bucks the more adventurous and/or better positioned than myself will make in this tumultuous time, and wait for something else in a more predictable market to happen 5 years from now....

    The Y-man
     
  7. datto

    datto Well-Known Member

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    Prior to GFC - I recall the banks were handing out money like drunken sailors. Then the proverbial hit the fan.
     
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  8. LeeM

    LeeM Well-Known Member

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    I thought about this too. The only thing difference this time is that people around the world are dropping dead by multiple numbers daily . And we’re not immune to it either
     
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  9. LeeM

    LeeM Well-Known Member

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    Why 5 years @The Y-man ? Do you think this recession (if is) will last for 5 years.
    ?
     
  10. David_SYD

    David_SYD Well-Known Member

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    GFC/ Recession/ Credit Crunch 2008-2010

    Construction Industry - UK

    • Remember owners of long-standing Subcontractors committing suicide
    • Recall a lot of Subcontractors going to the wall, owners turning into alcoholics
    • Recall A LOT of marriage break-ups
    Bad memories. Wouldn’t want to see it here.

    Personally did well out of it - 1 good story for every 20 bad ones.
     
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  11. The Y-man

    The Y-man Moderator Staff Member

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    Yeah I reckon the repercussions this time are going to be huuuuge.......

    The Y-man
     
  12. Perthguy

    Perthguy Well-Known Member

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    That was great! I would set up a meeting with the bank manager, sit down and say "I need some more debt". Two payslips was all it took. Good times!
     
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  13. Ted Varrick

    Ted Varrick Well-Known Member

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    So true, and this time, should the classic car market tank, we will all know that auto Nirvana could be at hand.

    @datto might find that original Oz delivered GTRs, and lets face it, they are 4wd Turbo 180B SSS's with a 2.0 update, might sell for cents on the dollar.

    And Commodore V8s? Don't get me started...

    Buyers will be doing cartwheels, sellers... not so much.
     
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  14. WattleIdo

    WattleIdo midas touch

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    Have experienced them all since 1989 and have been affected by them all. Gets easier the older and more 'secure' I get. Didn't consciously notice the 70's downturns but that was just a very different time and not many had more than a few cents to rub together then anyway.
    What's different this time is that the focus is on life and death itself, not just the economy. I found myself saying I don't even care about the money this time. Which isn't true but given the choice between taking my wealth or a family member, there's more perspective.
     
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  15. PandS

    PandS Well-Known Member

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    90-91 no idea too young still in school
    Y2k - made a lot of money as IT contractor working on Y2K projects, bought house paid if off quick
    9/11 still in IT working for an American company, they call us all up the first order and only priority is to secure all the servers because they think cyber attack comes next, don't know anything about the stock market
    2008 made a bunch of money post-crash cos I was buying during the recession, bought cars cos it was cheap and I need another car
    2020 bough last few weeks, dividend start to hit coffer I just save and target more buying so this still playing out don't know for another 10 years
     
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  16. balwoges

    balwoges Well-Known Member

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    Lived through all of those times and learnt lessons which I put into practice when I finally retired. Thankful I am in a good place ... :D
     
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  17. wilso8948

    wilso8948 Well-Known Member

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    Y2K - remember watching the midnight fireworks waiting for a massive 'glitch' to happen and the world to end
    9/11 - wasn't taking too much notice as I lost a close family member 3 days prior
    GFC - was too busy drunk and chasing girls at uni
    COVID-19 - Busy learning as much as I can from experienced individuals and doing what I can with the little amount I have. I want to be aware as I firmly believe I will go through this again multiple times in my life. Watching and learning.
     
  18. peastman

    peastman Well-Known Member

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    I think we have to look at the Spanish Flu in 1919 to get an idea of what may happen over the next few years. I have not done much research, but the 1920's were known as the roaring '20s because everyone had money. That would be nice if it repeats, just watch out for the great depression 10 years later!
     
  19. Beano

    Beano Well-Known Member

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    Were you affected by the 1987 crash ?
     
  20. Tony3008

    Tony3008 Well-Known Member

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    Roaring 20s came mid-decade only after the Depression of 1920–21 - Wikipedia
     
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