I do feel sorry for Steve Keen. 1. He put off buying a house in the 1970s and 1980s, expecting a crash. 2. He eventually bought in 1989 at the peak of a boom just before prices fell. 3. He bought again in 2006 at the age of 53 with a mortgage. 4. He stated on ABC in 2008 that he had a mortgage of 3.5 times his GROSS income at age 55. 5. He sold his unit in 2008 at the trough of prices in Sydney. 6. Prices in his area boomed after he sold and he had to wear an embarrassing T-shirt. 7. He now rents at the age of 58. keens'answers to questions put to him... THE BIG QUESTIONS
Biggest break Choosing to read Hyman Minsky's book John Maynard Keynes in my Masters. That gave me a perfect explanation of the chaos we've got ourselves into.
Best investment My education.(*****please note...warning bells**** )I'm not a good person for finance. I am, in that sense, conservative.
Worst investment My ex-wife, who is a good friend, worked for a telecommunications company that wanted to do an IPO to employees. She wanted to buy $3000 worth of shares. She said, "They're undervalued compared to the market." The price-to-earnings ratio was 40 to one. I said, 'That's crazy. We shouldn't buy them ... but well, OK, we can afford to lose $3000." They went down to 300 bucks.
(it was not telstra, but one of those risky little wannabe's)
(******please note the following*******)
Biggest regret Probably not getting in at the beginning of this speculative bubble in housing when I first moved out to rent in the 1970s. If I'd wanted to be financially comfortable, I should have done that. I didn't buy a house until 1989. I didn't believe the bubble could go on for as long as it did.
***wow 22 years later and he has still missed the bus....and still renting ****
duh....dunce he is almost 60 years old...what has he got to show for it...no house paid off, heading into retirement...my god.... and you guys follow a dunce like this..
