I Guess A Lot Of People Saw Only Sunny Days

As I read more and more about the economy these days, one pattern that I see, over and over in many of the sad tales that are being told, is the "nothing but blue sky" outlook that seemed to enthrall a lot of people. In Panic: The Story of Modern Financial Insanity by Michael Lewis, there's example after example of individuals who were riding high in one way or another and then had their lives turned upside down when the wave finally crashed. As just one example out of many, there's the real estate agent in Florida who made $800,000 in one incredibly good year, but who is now virtually destitute. As his income had gone up, over several years, he just kept increasing his standard of living at an even faster pace. What kind of dementia possesses people that can cause them to think that just because things are going well now that they'll continue to do so forever? From the sounds of it, many of these folks changed their lifestyles to not just use up their newfound fortunes, but actually to exceed them (under the assumption that their income would grow by another 25% - 50% in each future year, I guess).

If I learned nothing else from growing up poor, it's this: Good times rarely last! We had a few years in my childhood where my mother had re-married and my new step-father had a good career as a self-employed electrician. For several years we actually went places during school vacation, had relatively new vehicles to ride around in, and didn't have to worry about where the next meal was going to come from (the kitchen cupboards were always full!). But even that luxurious period ran its course, and by the time I hit Grade 6 it was just my mother and I living in a 2-bedroom apartment and having all the old concerns to deal with once again. I was personally glad to be rid of the cranky old ass, but the financial downside was considerable.

Because of those experiences, I'm predisposed to expect the worst, even when fortunes are flying high. After all, you never know when the next rainy day is going to be, nor how long the downpour's going to last. So is the main reason that more people don't live within their means as simple as: they've never gone through an extended stretch of bad times? Or is there something in our nature that makes some people just naturally optimistic? There are certainly a lot of truly heart-breaking stories out there in the world right now, but I have little or no sympathy for that portion of the population who "had it all" and only now are realizing that they actually pissed it all away.