Found some old Reddit threads from 15 years ago talking about the 07-08 recession

Submitted by Fantastic_Bar3109 t3_10n8hfk in wallstreetbets

I really enjoyed reading these and I want to share them with WSB. These are links to 15 year old threads either before, during or after the Great Recession of 08.

Interesting to see what retail was thinking of it back then.

Here you go :

The stock market is crashing. Americans are losing their homes to foreclosure. The dollar is crashing and continuing to decline - who's to blame?

In a couple of hours the US Stock Market is going to crash : Japan's Nikkei Index Drops "Again" 4.4% on Jan 22

Dear Reddit : Take a deep breath and use your head. The market is not going to crash. We're okay.

CEO of Wells Fargo "Housing in Worst Shape Since Great Depression"

Paul Krugman Has Housing Bubble News That Will Scare the Crap Out of You

Can we call this the stock market crash of 2008 yet?

​

Here are some of the comments made back then that I think are worth mentioning :

"Hmmm. PANIC! PANIC! PANIC! Jesus Christ, folks.  Chill the F down with the alarmist stock market articles."

"Get off reddit, go buy stock and meet some girls!"

"God dammit, the fucking stock market is not going to crash.  Jesus Christ, get your heads out of your collective asses and use your brains.""This is alarmist and speculative, so treat it as such.  I'm so fucking sick of seeing this."

"Hmmm. I'm going to bet the stock market DOESN'T Crash. Downmodded for exaggeration."

​

These comments were in the most upvoted comments too. Makes you think.

​

Credits to u/Live_Painter_9573

Stumbled upon his post titled "A trip down memory lane: Reddit Investing threads from 2007-2009" and thought it was worth a share.

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joevan55645 t1_j67g8r3 wrote

Somewhat ironically so much of the content is about how nothing bad is going to happen while today much of the content is about all the bad things that are about to happen 😂

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PurpleSausage77 t1_j67if9b wrote

The social media factor is huge. Facebook was just getting started back then.

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Fantastic_Bar3109 OP t1_j67ghff wrote

Yep! It all sounds like doomsday predictions until it really happens

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_PM_me_your_MOONs_ t1_j67t7zv wrote

When you predict a doomsday every day...eventually you will be right, sort of.

If you were young enough, holding worked out....and then there was almost a decade of home buying opportunities afterwards.

Yet somehow, people are still complaining about not being able to buy a home and are gambling their lifesavings away on pennystocks and bad plays.

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pw7090 t1_j698g4s wrote

That's me to a T.

Had about 25k saved up (3 years savings), but houses in my area are $400k+, so I wasn't even close to being able to afford.

Having a baby soon, so since savings was about to go to $0, I "took the chance" on gambling in the market last year...and lost it all.

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[deleted] t1_j6b3gmq wrote

[deleted]

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pw7090 t1_j6bb6bz wrote

The mortgage would be way too high. We would have needed to put over $100k down in order to be able to make the monthly payments, even with the old 3% rates.

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Fantastic_Bar3109 OP t1_j67ubd8 wrote

Recessions are incredible buying opportunities if you can afford to do so. I've been saving for moments like this.

You are right, people make dumb and risky plays instead of preserving capital to buy the dips. I'm done trying to time everything and just open positions on solid companies. The real value plays

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lucidvein t1_j6kg5hu wrote

somehow people complaining about not being able to buy a home?

probably because we went from one working individual per family to two.. jumping house prices due to supply and demand.. and then not giving raises that are in line with inflation.

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_PM_me_your_MOONs_ t1_j6km6bl wrote

That excuse works now...but if you read the comments and understand that this discussion is from 2007 to present, that mouthbreathing argument doesn't stand up.

Houses were dirt cheap in most states for years after the crash.

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Stachemaster86 t1_j67j9sl wrote

We know what’s “capable” so it’s “forecasting” and sensationalizing. No different than Katrina reporting and hyping up NO being hit, only for it to “miss” the French quarter and reporters didn’t have material ready for the 9th ward being hit. People get glued to the fear, they don’t watch if “everything is fine”.

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Fantastic_Bar3109 OP t1_j67kcw0 wrote

Couldn’t agree more! With analysts and reporters having different views, we often look for confirmation bias instead of looking at the whole picture

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RecommendationNo6304 t1_j69par6 wrote

There's a saying, Generals are always fighting the last war. Applies to most aspects of life.

Availability bias is tough to escape and most people don't read, much less read history.

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Normal_Ant_4612 t1_j6b1rbe wrote

These comments from one of the posts above could indicate otherwise, idk tho I was like 9 and not on Reddit:

“http://finance.google.com/finance?chdnp=1&chdd=1&chds=1&chdv=1&chvs=maximized&chdeh=0&chfdeh=0&chdet=1197131064000&chddm=493833&q=INDEXDJX:.DJI

Doesn't look like a stock market crash to me...” ——

“It does if you're a 19 yr old zit-face.

In the oldest form of "misery loves company", the typical reddit dweeb roots for economic collapse.”

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trynafigureitout444 t1_j6bup5c wrote

“Anytime all the economists agree, something else is going to happen”

-some finance guy

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Pasdgrapd t1_j68q16q wrote

Well shit im about to start buying like crazy then. Everybody thought we were fine back then and it crashed.

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Slicklickfstick t1_j6a8ncv wrote

I mean if you look at the 5 year chart we have clearly deviated significantly from the local trend line in a negative way. A crash at this point would mean our rate of gain when we come back to the trend would be incredibly fast. Like digital revolution fast.

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No-Drag4078 t1_j6cdgt7 wrote

Well the content was saying nothing would happen and the articles on the news said the opposite… which one ended up right though?

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stephcurryftw1 t1_j67mcsb wrote

> It's the Great Crash of 2008. Although the Great Crash of 1929 eventually outpaced this one, that took years, and the initial drop was pretty much on par with what we're seeing right now.

> Also: Buy and hold, my ass.

This guy disappeared 13 years ago. I wonder if he missed out on the bull run from 09-2021. He probably fomo bought last year at the peak.

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General_Asleep t1_j689feh wrote

Or he might have died it was long ago.

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RedOctobrrr t1_j68qsz5 wrote

Yeah this. I've had like 3 very close encounters with death from 2009-2022 (one of those involved a lathe) and that's not including the 3 times I was out with COVID.

The fact that I'm alive and well today is nothing short of a miracle.

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Lazy-Communication59 t1_j69i8bn wrote

This guy called having COVID a near death experience 😂

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RedOctobrrr t1_j6a213u wrote

I specifically said it was not COVID, so that one doesn't think "oh prob exaggerating" ... excellent reading comprehension regard

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Aztraeuz t1_j67hbm6 wrote

So what you're saying is.....with everyone talking about decline right now.......the market is going to go up?

Let's go! Buy buy buy!

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miroslav1967 t1_j67sxym wrote

Remember it. Lost all my money on Washington Mutual stocks.

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CurveAhead69 t1_j67xxb9 wrote

“This is just the beginning, fool.”

Bottom comment of the third thread.
“Run you fools, RUN!” vibe 💯

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Dad_Is_Mad t1_j6a4956 wrote

I was a Junior Broker starting in 2007. It really wasn't that bad. I became a full-time Broker in April of 2008. Still really wasn't that bad. The market sucked, but every corporation had +6.00% paper out there to buy, so again wasn't too bad.

The real pain didnt start until October of '08 on till March of '09. I made $386 in 6 weeks. Yeah, it fucking sucked. I could've given away stocks for free and couldn't get anyone to buy. And no one would touch the anyone's paper after Lehman failed and most of the other banks/brokerages had to sell for pennies on the dollar.

This is why I laughed my ass off at all the Crypto Bros yelling at people for having cash. This won't end until people start liquidating assets and selling them for a loss. Whether it's homes, stocks, whatever. Money isn't made during shit like this, it just simply changes hands.

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odity9 t1_j69463q wrote

Not a lot of options talk. All that opportunity in front of them and no profit. Sad time.

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Fantastic_Bar3109 OP t1_j697chc wrote

Do you want to be even sadder ?

Take a look at this post and the first comment The guy is excited because his port jumped 25% img

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odity9 t1_j6aki17 wrote

Lol, lot of CD, Tbonds,ETF talk. They mention how risky stocks are and tell them to stay away. If they only knew what we were smoking now.

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Federal_Pin_8782 t1_j67s9f5 wrote

Well shit im about to start buying like crazy then. Everybody thought we were fine back then and it crashed. Everybody now is ready for a hell on earth crash so imma assume we just started another 8-10 year bull run!!

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bighausbc t1_j6abq2d wrote

I was a contracted for the banks in 2011-2014 it was a hard time alot of home I would clean up had suicide evidence. I pray we all can make it thru this one better then 08

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Okimingme t1_j68mp3i wrote

I think the word crash is overused. Reversion to the mean sounds much better and more accurate describes what is going to happen 2023. But yea hard to believe we won’t see 3300 in the s&p again this year. Once outlook cools and pe corrects there is only down until prices are back in equilibrium to mean pe

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Coolzx t1_j67s23h wrote

Interesting thing to think about. If you had bought at the top in 2007 and never bought again till now with the recent downturn you would have still made 150% return.

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Idbuytht4adollar t1_j683jiy wrote

You have to adjust for inflation. Still prob a solid return

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my-user-name- t1_j68kqmw wrote

No you don't, the return is calculated to compare it to other ways you could have used the money. If you had put all your money in a sock and hid it under your bed in 2007, you'd still have the same amount of money. If you had bought at the very top, you'd have a 150% return. In both cases there's inflation, but calculating returns is done to compare the two and show that yes, even buying at the very top is usually better than keeping all your cash under a mattress.

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Idbuytht4adollar t1_j697ayf wrote

yes you do the idea is to eventually use the money. if you got a 2 percent annual return for 10 years then your still able to buy the same things. if you doubled your money but now a house is 4x the money how does that help

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8yr0n t1_j6ag2f1 wrote

Your making sense and planning way too far ahead for this bunch…

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cayoloco t1_j6ba5j3 wrote

Then you should have bought real estate instead of stocks. Different assets have different returns.

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BarberExpert9114 t1_j6bz3ao wrote

Real Estate prices != inflation rate housing big Up for long time And Big Down for small time. Inflation =slow up and slow down.

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my-user-name- t1_j68k45z wrote

There were also perma-bears right at the bottom tho May 2009 :Stocks jump after consumer confidence level surges. AKA: "What are these people smoking?! https://www.reddit.com/r/business/comments/8ndrd/stocks_jump_after_consumer_confidence_level/

The bottom was March 2009, remember

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Fantastic_Bar3109 OP t1_j68khth wrote

wow now that's funny!

I like this comment too :

Is it even possible to have a recession when investors have a 6 month attention span? We'll keep inflating bubbles until there's nothing left to inflate.

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vacityrocker t1_j67hq7n wrote

Great stuff! takes me way back. I saw some pretty red stuff and some ugly red stuff... then there was that chubby hotty who ditched me for another dork with a chubbier wallet on a fricken gay ass harley... I was so red and stubborn I knew my picks were good just a bit early.... then they went even more red and I thought of those two chubbies on that gay ass cream colored harley and I got mad and bought more they went red too!!! I ate stale mash potato mix 3x a day... that chubbie when I think of her is one of my favorite happy places... when I need it...

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kungpaocheese t1_j6818qx wrote

Gramps, turn off the internet.

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vacityrocker t1_j6978sb wrote

Is that the stuff kids listen to these days?

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kungpaocheese t1_j6alrfx wrote

It's something with "tubes" is all I know. They watch these TV shows on their telephones and talk to their Dick tracy watches.

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SPDY1284 t1_j6acd0u wrote

It’s really funny how people think recessions are never going to come, even though we know for a fact that they are natural parts of the economic cycle. Contraction leads to expansion and expansion leads to contraction. 2009-2021 was one of the biggest expansions in our history and people still don’t see a recession coming even tho every indicator is telling us one is around the corner (months away). We also know that recessions drop earnings by around 19% on average… but yeah, go buy TSLA at $180.

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FizzHammer t1_j68970l wrote

Wait…. So we actually are/were in a bear market?

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Fantastic_Bar3109 OP t1_j689zx2 wrote

It ends next week when jpow announces the pivot

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d0ntBsilly t1_j68hwu0 wrote

I’ll cry if he does this. Not cuz I’m short but cuz I didn’t deploy all my cash yet

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[deleted] t1_j68o502 wrote

[deleted]

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Outrageous-Cycle-841 t1_j68thke wrote

Lol how so? We’re only 15% off all-time highs on the S&P…

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Past-Adhesiveness150 t1_j6908tc wrote

Sounds like you were a teen in 08

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Fantastic_Bar3109 OP t1_j6926li wrote

Yes I was 15 in 08 in Canada. Didn't see the repercussions as it wasn't as bad as in the US

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Past-Adhesiveness150 t1_j69bodz wrote

So it was pretty bad.

Predatory Lending. The banks would give out loans for more than people could afford, on the "idea" (wishful lthinking at best) thuuat the economy would keep growing & people wouiuld make more mouney. They would give a loan where you wouldn't have to make your first payment for 3 to 6 months.

A lot of people figured that banks/lenders knew what they were doing. They wouldn't give out money if they didn't think you could pay it back.

That's where it loses me tho. We're they hoping to then own these homes after people defaulted? We're they thinking they'd make money on the loan for a bit ( because all you pay is intrest for the first few years) & then own the house to sell? Don't know. But it sucked.

I saw 2 of my neighbors lose thier homes. Friends of mine got divorced, after all the stress of losing thier house, not finding housing...kids too.

We bought at the peak also. But I made sure we didn't borrow more than we could afford. We also had a good local bank. They knew that of they fucked up, they would only be screwing someone who was a local.

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THICC_DICC_PRICC t1_j6af81v wrote

You left out the part where the whole subprime lending thing was driven by the government, either through Freddie and Fanny, or through putting regulatory pressures on lenders(they downgraded the credit ratings of banks that didn’t participate). Started under Clinton, expanded under Bush. It was widely bipartisan so no one ever stopped to ask some questions if it’s sustainable. It should surprise absolutely no one that congress investigated itself and found nothing there.

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greenerdoc t1_j6ajdew wrote

People always seem to forget that homebuyers amd investors were also are guilty of FOMOing into buying property, leveraging up on their bets, taking loans they had absolutely no business taking out, buying houses they knew they couldn't afford.

This wasn't solely a government or bank thing. What made this work was that everyone was able to pass the risk down to the next party in line because the mortgage credit rating system was fucked (someone rated risky surprime loans as safe as the traditional mortgage because the thought was that everyone pays their mortgage, historically)

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Past-Adhesiveness150 t1_j6b9shj wrote

It's the American dream. Like I said, people didn't think that experts... the banks, would give them more than they could afford.

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my_fun_lil_alt t1_j69gasn wrote

Paul Krugman is dumber than WSB and Cramer combined. How he's managed a career is beyond me.

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kingallison t1_j69gizc wrote

Yeah inverse stupid people was always a good strategy even before 08

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_Jetto_ t1_j69jcy1 wrote

Would be a fun read but my question is how could the average person make money knowing 6-12 months what was going to happen? You don’t have millions so what do you have to do? Buy puts on banks???

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Wanna_Runn t1_j69znnm wrote

Who needs articles when you have lived through enough of wallstreets fuckery to realize every decade their greed destroys the economy

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Ldjforlife t1_j6lbvjf wrote

Thank goodness I was in college when this happened. I was studying agriculture at the time and had recognized that very few people were doing the same. I had a 45 year job lined up after school and bought my first house for 65k.

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VisualMod t1_j67g2k2 wrote

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Buttfart2002 t1_j68oag6 wrote

so maybe we just go out of the recession of ‘22 🤷‍♂️ and they just buying all the stocks now, making us think it’s gonna dip more. Jackson hole2.0 on the first ? Or more ups. I’m bullish still with downside exposure. Don’t know what this week will hold

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Fantastic_Bar3109 OP t1_j68oywo wrote

Just to clarify, I'm not saying 2008 will happen again. I just wanted to share what retail was talking about in those times. I am not a bear now. I think all the major earnings will make the market pump. Because nowadays, even bad earnings are bullish img

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Buttfart2002 t1_j69mlsy wrote

Curious about apple

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captainmalexus t1_j6apxq1 wrote

Imo, Apple will always be fine. They have massive cash reserves and a recession isn't gonna stop most people from buying the latest iPhone

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Playful-Bandicoot-82 t1_j6ao67q wrote

Maybe someone should dig up the one where I said Peyton Manning has happy feet and will suck. Ryan Leaf has a cannon and will be the next star in the league.

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st3alth247 t1_j6be2iv wrote

Hehe, funny in retroperspective that this guy's though the market isn't crashing. The chart showed sometime other

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Only_BlackTShirt_Guy t1_j6kjo93 wrote

Many people on these old posts were very civil in the comment section lol

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kyliecannoli t1_j6m1a05 wrote

There’s nothing “natural” about a recession, and the economy is not a cycle as if it’s some outside forces that people have no control over like the four seasons

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