Quote Originally Posted by corktownyuppie View Post
Some of this is explainable with behavior finance.

Imagine you have $10,000 in an investment.
2008 happens, and you see the investment drop from $10,000 down to $5,000,
The following year you see a 50% gain...you go from $5,000 to $7,500.
The following year you see a 20% gain...you go from $7,500 to $9,000.

One person says, "holy sh**, a 50% gain and then a 20% gain back-to-back?? Those are record-breaking numbers!!"

The investor replies and says, "Yeah, well I had $10,000 three years ago and I'm still not back to even, so I'm still pissed."

A few laws of human behavior when it comes to money:
- We feel losses more intensely than we feel gains.
- Everyone compares their current state to whatever was their "personal best" or "all-time high".
- People compare themselves to the people around them.

And, thus, here we are.

Of course, the past is past. The only thing we can be concerned about is continuing to push he ball forward. Some people will never get back to their all-time high in Detroit. Others will see it, but it may take the rest of their life. We can't turn back the clock, and in some ways we shouldn't want to. And while we are seeing gains, they don't get to spread to everyone equally and simultaneously.

You know the American economy has been growing for 7 years straight? I know engineers at Apple that have gotten $80,000 bonuses 5 years in a row.

But tell that to the displaced factory worker who took a job for half the pay no raises for 7-years straight.

So, that's Detroit. All the perspectives are right. It's all very relative, and your opinion is very much informed by what's happening in your specific portion of the 144-square-mile behemoth that is this wonderful city.
Very well written.

I've had for years my 'theory of wealth and happiness':

Two hypothetical people:

One has 300K in the stock market and loses 100K but has 200K left.

The other had 100K in the market and made 50K for a new total of 150K.

Which one is 'happier'?

My theory and this poster would both agree the person who went from 100K to 150K feels better although the one with 200K is 'objectively' better off.

To draw this to Detroit:

The neighborhoods are like those who had 300K and lost 1/3.

Downtown, midtown, etc. are like those who went from 100K --> 150K.