This depression feels different.
This one is cooking the usual folks; those who are economically marginal, sure. And that's to be expected. And I have a unique ability to tell who the usual suspects are, because I've been an Arizona bankruptcy lawyer for about 28 years, and I've seen the economy go up, and go down. And I've seen who files bankruptcy when the economy goes up and who files bankruptcy when the economy goes down.
What's a little more counter-intuitive is this: the folks who made the most money, and therefore had money to invest, and the folks who were the most careful with that money, and therefore had money to invest, are exactly the folks who are getting squashed by this depression in Arizona.
Here's another way to look at it. Doctors, for instance, have been described as having a long "time horizon". It's been said that doctors retire rich because they're looking at their retirement date and their retirement account from the day they start practice.
And if you have a goal, you have at least SOME chance of reaching that goal.
But in this depression, here in Arizona, the folks who are routinely being squashed flat are folks who don't, in any usual sense, deserve it.
That is, doctors go to school forever, and have to actually study, rather than party. They work half-days (any twelve hour shift they want). And they're held to the highest standard in the world, and have to answer for it if they guess wrong on which individual might be allergic to which medication.
And they're rewarded for all the above.
But those same characteristics have made them particularly vulnerable to this depression.
The doctors who were paying attention to investment opportunities saw that real estate looked pretty good (actually, fantastic). And those who squeezed themselves, and went without a lot of luxuries, were able to buy a dozen investment homes, and were worth five million dollars a couple of years ago.
Now those same doctors are being sued for deficiencies by the friendly banker who told them there wasn't any risk, because, after all, people had to have homes.
So they zigged when they should have zagged, and now they get to stand in line at the Bankruptcy Court for the District of Arizona for their Chapter 7 Bankruptcy, hoping for a discharge, along with folks who partied all through school and never expected to make any money.
There's got to be a moral here. Maybe it's diversify your investments, but I don't think so.
It may be take care of your teeth (a fairly standard comment from folks who make it to 100 years plus in age is "If I'd known I was going to live this long, I'd have taken better care of my teeth!).
Or it may be to make time for those you love, because when all your money is gone, and you file a bankruptcy, and you don't yet have traction on your second or third fortune, love is all that matters.
And for that matter, when you're as rich as Croesus, love is all that matters.
So tell those you love that you love them today, because nobody ever knows when bankruptcy, or a heart attack (and bankruptcy) or old age (and bankruptcy) or a major depression (and bankruptcy) or a change in consumer taste (and bankruptcy) or betrayal by a partner (and bankruptcy) or devaluation of currency (and bankruptcy) or a baseless lawsuit (and bankruptcy) or a well-founded lawsuit (and bankruptcy) or a business error (and bankruptcy) or a depression (and bankruptcy) are around the corner.
A depression, and all those other things that lead to bankruptcy, comes like a thief in the night.
So tell them all you love them. Today.
This one is cooking the usual folks; those who are economically marginal, sure. And that's to be expected. And I have a unique ability to tell who the usual suspects are, because I've been an Arizona bankruptcy lawyer for about 28 years, and I've seen the economy go up, and go down. And I've seen who files bankruptcy when the economy goes up and who files bankruptcy when the economy goes down.
What's a little more counter-intuitive is this: the folks who made the most money, and therefore had money to invest, and the folks who were the most careful with that money, and therefore had money to invest, are exactly the folks who are getting squashed by this depression in Arizona.
Here's another way to look at it. Doctors, for instance, have been described as having a long "time horizon". It's been said that doctors retire rich because they're looking at their retirement date and their retirement account from the day they start practice.
And if you have a goal, you have at least SOME chance of reaching that goal.
But in this depression, here in Arizona, the folks who are routinely being squashed flat are folks who don't, in any usual sense, deserve it.
That is, doctors go to school forever, and have to actually study, rather than party. They work half-days (any twelve hour shift they want). And they're held to the highest standard in the world, and have to answer for it if they guess wrong on which individual might be allergic to which medication.
And they're rewarded for all the above.
But those same characteristics have made them particularly vulnerable to this depression.
The doctors who were paying attention to investment opportunities saw that real estate looked pretty good (actually, fantastic). And those who squeezed themselves, and went without a lot of luxuries, were able to buy a dozen investment homes, and were worth five million dollars a couple of years ago.
Now those same doctors are being sued for deficiencies by the friendly banker who told them there wasn't any risk, because, after all, people had to have homes.
So they zigged when they should have zagged, and now they get to stand in line at the Bankruptcy Court for the District of Arizona for their Chapter 7 Bankruptcy, hoping for a discharge, along with folks who partied all through school and never expected to make any money.
There's got to be a moral here. Maybe it's diversify your investments, but I don't think so.
It may be take care of your teeth (a fairly standard comment from folks who make it to 100 years plus in age is "If I'd known I was going to live this long, I'd have taken better care of my teeth!).
Or it may be to make time for those you love, because when all your money is gone, and you file a bankruptcy, and you don't yet have traction on your second or third fortune, love is all that matters.
And for that matter, when you're as rich as Croesus, love is all that matters.
So tell those you love that you love them today, because nobody ever knows when bankruptcy, or a heart attack (and bankruptcy) or old age (and bankruptcy) or a major depression (and bankruptcy) or a change in consumer taste (and bankruptcy) or betrayal by a partner (and bankruptcy) or devaluation of currency (and bankruptcy) or a baseless lawsuit (and bankruptcy) or a well-founded lawsuit (and bankruptcy) or a business error (and bankruptcy) or a depression (and bankruptcy) are around the corner.
A depression, and all those other things that lead to bankruptcy, comes like a thief in the night.
So tell them all you love them. Today.
Leave a comment