Just a trip down memory lane. Lehman Brothers was the first financial institution that went out of business in late 2008. Every major bank was saddled with worthless mortgage backed securities and on the verge of going out of business. Even Goldman Sachs was tethering on the edge of bankruptcy. All the bank CEOs were begging the government for a bailout. I started considering taking all my money out of my bank and stuffing the cash in my mattress. No joke. While all of this is happening, my utility company that provides heat in the winter goes out of business. Damn! How am I supposed to stay warm without any heat now? I lose my job and don't find anything until 2011. Yes, 2.5 years of no job and no income. My house value plummets and doesn't come back up until 2016. It almost goes into foreclosure in 2009-2010 but I borrowed against my 401(k) to keep making payments. By June 2009, the layoff bloodbath is over and the 101 freeway in the Bay Area sits empty during rush hour. Everyone has lost their job in the Bay Area it seems based on traffic or lack thereof. This year is proving to be far less stressful than what the whole country went through in late 2008 and 2009.
How did you borrow against 401k if you were unemployed?
When you lose your job, you roll over the 401(k) into a rollover account until you start another job and have another 401(k) to rollover into.
Lol, get ready because all of that has accelerating and is going to happen. 2022 was just foreplay
I am not worried about taking my money out of my failing bank and stuffing it in my mattress this year.
I was pretty lucky that my company at the time only laid off 25%. But it was nerve-racking to sit in the cubicle wondering if my boss is going to call me into his office next. Many of my coworkers didn't survive the layoff and I had survivor guilt for months afterward. I stopped contributing to my 401k for 2yrs and compulsively saved every penny.
needless to say not everyone lost their jobs but it was nice to not have to compete for parking at work. rent dropped 20%, less traffic jam but not empty because WFH wasn't a thing. petty crime was up with lots of cars broken in. prolly why so many covid handouts this time but only delayed the inevitable.
It was very surprising when Lehman collapsed. People predicted a housing crash, but nobody saw that coming.
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Closed now - thank you all
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Thanks for sharing this! 2008 hit the common man out of nowhere. This time it’s the most anticipated downturn. I hope we all get through this