Reply #13: There's a hole in your theory

[Frodo]

mhr is the unexplainable gap between the blue and red lines on this graph over the last two years. While things are dramatically improving in general there are an unaccountable number of people out there unemployed for much longer than in previous cycles.


Also

1) My first reaction to mhr was similar. I've got about 6-9 months income in cash reserves assuming that the savings plus a reasonable severance would keep us from tapping savings for at least a year and I just can't conceive of it ever taking a year to find a job in any market.

2) It's a very very hard thing for some people (particularly men) to go from six figures to flipping burgers. I'm not making an excuse... but it isn't always as simple as logic would make it sound. I could probably go four to six years eating into my retirement before my family would have to consider giving up the house or not eating and I honestly don't know how far into that nestegg I would go before I "gave up" what I thought I was worth. I probably would do something part-time. I really don't know.