Quote:
Originally posted by Colin
Lots of other people were getting rich. What'd you do wrong?
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Really just a combination of bad luck and bad timing.
Plus I was probably blindsided by my inexperience (I was 20
at the time).
Interest rates had started a slow rise near the end of the
Carter era. They were high, but manageable. During the
Reagan transition, they spiked at near 21%.
What Reagen failed to do was get the rates under control.
Carter didn't care...he was a short timer.
As with any politician, Reagans personal interests outweighed
the general public good. His supporters included the banks
that were making huge profits from the high rates.
I was a construction subcontractor at the time, and extended
in the high 6 digits on short term credit to both finance present
and secure future jobs. As interest rates rose...future projects
were cancelled and current projects were closing down.
Over 40% of the large building contractors in the Seattle area
closed down or went bankrupt in a 9 month period. Needless
to say, no one got paid...
It took everything I had to avoid bankruptcy.
The next few years of cutting social programs (forcing large
numbers of non-workers into the job market) and Trickle-down
policies, even made it tough to find a decent job. I was lucky to
have a marketable skill. Times were tough for awhile.
Bob