This morning I went on to StreetEye to get an idea for today’s Market Musings. One of the top articles was surprisingly about a Marc Andreessen‘s tweetstorm on Business Insider.Here is the article: If you’re too young to remember the financial crisis, then read Marc Andreessen’s tweetstorm. I think it’s the first time I’ve seen a tweet storm used as the basis of an article but it surely won’t be the last.
Marc’s tweetstorm was set off by a junior partner at his Venture Capital firm, who asked a question about the financial crisis. Marc began explaining the financial crisis in a 140 character chunks.
For someone who worked through the financial crisis, I think Marc did a good job explaining and providing information about why people are still scared by the event. In 2008, I was eight months into my first full-time job in a quantitative fixed income group at a mutual fund company, and I remember that September date like it was yesterday. For some reason, about a month later I ended up buying my first house which was a real indicator about how naive I was at that moment. There were a few moments during that next year where I really thought I was going to lose my job and our house. In those days while my coworkers and I were sitting in a conference room watching people at Bear Sterns, Lehman Brothers, and Merrill Lynch packing up their boxes or being bought by other firms. That’s when I started thinking that if Bear Sterns, one of the main investment banks in the country, wasn’t going to survive than who would? It was the closest time we’ve ever seen the financial circus almost come to a stop. It wasn’t a fun time for someone who recently bought or owned a home.
I was lucky to work at a pretty conservative firm and they never cut any jobs throughout the crisis. I ended up making it through. There were a lot of people at much larger firms that weren’t so lucky. On the flip side, I never benefited from the preceding positive movements in the market since then.
I can see why many professionals who entered the markets after 2008, especially if they only started their jobs in the past year or two, would not understand why many people are still concerned with risk and talk about the crisis.
Here’s the simply explanation:
It’s because everyone thought they were going to lose their jobs and all their money.