This post was written a few years after the 2008 financial crisis. The world was still licking its wounds. Housing was the epicenter of destruction. The lesson hasn’t aged: inflated assets, easy credit, and collective amnesia guarantee the next crash. By 2025, the shapes have changed (crypto, AI stocks, FOMO real estate), but the physics are the same.
A friend knows that I am always on the lookout for interesting sites where folks give lectures explaining things. He suggested that I check out the Khan Academy. It appears to offer a wealth of information on virtually every topic. I have included a two-part video on Wealth Destruction from Housing Bubbles. It is at least thought-provoking. I will open the floor to others to discuss whether it is correct or not. Go to the bottom of this post to find the videos.
Part 1: Wealth Destruction
I strongly suggest you check out my Twitter Feed. I have been told it is quite entertaining. I will also attempt to add my own personal commentary on life in there. What did you miss if you haven't subscribed yet? Here is a taste of some of the OBG (Oldie but Goody) gems I posted:
- In my early days, I used to brag about my prowess at installing computer equipment. I did this as I mentioned here with Investment: High Tech. Spoiler alert: it has nothing to do with investing.
- Having sat on both sides of the hiring "experience." One pet peeve of mine is when people think "business casual" means wearing shorts and flip-flops to an interview. Thus, I ranted Job Hunting Hints: Dress for the Job Fair.
- I do have a sister blog where I write occasionally. On this blog, I write about the business of blogging. Thus, Guest Posts: Please Stop the Madness addressed those who wish to write a guest post on this esteemed tome.
- In 2009 One in Seven of us Was a Senior Citizen, that number is decreasing (quickly) (i.e. we are all getting older).
- The Quarterly Financial Status Report is an old idea of mine. You publish a quarterly financial status report, usually to your spouse, to force yourself to figure out where you stand. This will help you feel more financially in control.
- One of my most brutally honest posts is my Top 5 Investing Regrets. You should read it. Don’t make the same dumb-ass moves I have made in my life.
Part 2: Wealth Destruction
FAQ Wealth Destruction
It is the rapid loss of net worth caused by market crashes, inflation, debt defaults, or really bad investments.
Overconfidence, leverage, speculative bubbles (and not getting out of them with alacrity), and ignoring risk until it’s too late.
Can you avoid a bus you don't see coming? Diversification, debt control, and critical thinking can help minimize it.
Real estate is emotional and confusing. People assume it always goes up, borrow too much, and get trapped when it doesn’t. A house for most of us is NOT an investment, it is simply a place to live, keep that in mind.
Will have to check out Khan Academy! Business casual has always seemed like a ill-phrased term to me…there’s nothing casual about it. That doesn’t excuse not knowing what it means, though. Following on twitter! 🙂
I’ve always been meaning to check out the Khan Academy more some day. It seems like such a cool concept to be sharing so much quality knowledge like that. Unfortunately it’s just tough to fit that into a busy life. I’m gonna have to go on a learning binge when I’m more caught up on things.
I’d say do 1 or 2 topics a week and that is good enough. I have watched a bunch of the finance stuff and am watching a few of the Math ones as well, really good stuff, just time consuming!