Option 2: Take Responsibility

The first step to taking responsibility is to accept your participation in the process.

The hard reality is this: We all played a part in the market upswing that preceded the economic downturn of recent years. Every one of us participated in some way, and it’s almost cavalier to pretend that as horrible things were happening all around us, we had nothing to do with them. Every investor was a part of the economic good time, and we have to admit that we either initiated or benefited by events in some way.

If investors associated with Wall Street made a lot of money, it’s because the stock market went up. If the stock market went up and you had investments, you made money as your investments appreciated. If you refinanced your mortgage quickly and easily with little need for documentation, it’s because mortgage refinancing was administratively simple and credit standards were lax. Perhaps you sold a business for a large sum of money and the buyer financed it with debt that was unsecured. That sale may have been easier because of the availability of that debt, and you got the cash. In addition, you may have had a favorable tax rate on your capital gain.