Shawn’s posterous

I'm not entirely sure why, and maybe I should be, but I'm not stressed at all about the down market right now. I'm saying this amid starting a business, a retail business at that. Perhaps I'm naive it will quickly learn that I should be stressed, but I think there's a few legitimate reasons I'm not stressed.

1. I think that the hardest hit people are going to be the baby boomers. They've been saving for retirement their entire lives, are going on social security and are largely dependent on their investments. During the last 10 years, they've seen their investments quickly build and have gained a large amount of security knowing how well off they'll be when they retire. As of today, however, the last 10-years are gone. It's a correction for sure and I have no doubt that the market will eventually regain those 10 years. But it's not going to happen overnight and maybe not even in the next couple years.

Lifestyle choices have already been made. If there's one thing we can learn from the last couple years' housing crisis, it's that people don't like scaling back already-made lifestyle choices. Will boomers buck that trend? Will they see that they need to scale back to live beneath their means? Or will their living above their means create another crisis in a few years when they're all out of money at about the point when they're going to need extra money for their care?

2. I think our generation is largely insulated from this economic crisis. A portion of our generation doesn't even use banks. For the most part, we don't trust the government or big business. We're fine shopping local. If there were a crisis that shutdown our shipping industry and created a situation where everything had to be sourced locally, I think it would actually excite many in our generation. We adapt and adjust pretty well. While many have gotten caught in debt early-on, I think many are learning their lesson early; While there's still time to correct the steering and get back on course.

Previous generations have dreamed of large incomes, big houses, nice cars, etc. We aren't any different. The difference, however, lies in the enterprising spirit which pervades our generation. We aren't factory-workers who can predict their income for the next 30 years. We will start businesses, grow businesses and come up with unique ideas. We're accused of being free-spirited. A shock I know, but we are. That free-spirit however, is insulating us from this economic downturn.

I see this downturn as an opportunity. Perhaps the greatest opportunity in many generations. I don't need to rely on Wall Street to make money. Or on banks. I would much prefer to pay for my house and my cars with cash. Or gold if need be. We will adapt. There will be pain for sure. But in the end we'll be much better off.