Posted on 04/04/2005 10:46:18 AM PDT by ex-Texan
But it's much bleaker than that.
This is the 1st insightful post on the whole thread.
DING DING DING!!! American's standard of living hasn't declined.. american's standard of spending has ballooned beyond their means... and while I am no fan of ever increasing tax rates.. they are the end of the day are not why most folks wind up owing everything to banks.
Every bigger homes, no one wanting to buy small starter homes..... need not only for 2 cars, but 2 brand new cars... having to have 6 TV's with at least one costing as much as a used car, $100+ a month digital cable, having to have the brand new camper/boat that sits in the driveway 51 weeks a year... etc etc .. buyign all this ON CREDIT and doing nothing to build wealth.
Financial immaturity had more to do with people getting in trouble than anything else! Credit is marketed harder than any other product in america today! 5 Billion offers for credit cards per year go out! We are a nation of only 300 Million people!.... That's nearly 17 offers per year for every man woman and child in the United States!!
Stop keeping up with the Jones'! The Jones' are BROKE! Live within your means today, and you will live a lifestyle like few others tommorrow!
I hate those who are just starting out now.
Why couldn't they start out then, like I did?
I hate them. I wish they'd die.
That said, The Credit Card offer I got in the mail the other day at 29% should be illegal to even offer, its nothing more than legal thievery.
At the very least it should be front page bold type instead of fine print buried on the back page. (yes, I threw it away)
There should be a reasonable limit to what APR they can legally help people spend their future at.
Yes, I believe in capitalism but also fair controls on greedy parasitic mega credit card companies to protect consumers from (yes, even) themselves.
This is absolute BS.. Fact is Cost of a house relative to household income is actually LOWER in most parts of the country today than it was 40 years ago!
Secondly, you don't BUY A HOUSE if you have no MONEY!... If you are just starting out you find a cheap apartment like your parents or grandparents did, and you live there and sock away your money until you have CASH to put down a downpayment on a house. Will you have to live a neighborhood lower than what you would probably like to? YES.. but guess what.. YOU DON'T START OUT WHERE YOUR PARENTS ARE TODAY! Every kid wants to achieve their parents standard of living at 22 years old... ignoring the fact that it took their parents 35 years of hard work to get where they are!
Last thing in the world you should be doing is getting into a house with zero equity! That has future foreclosure written all over it!
I think a lot of people on this thread are missing the point of the article, which is that there is a coming economic doom. Regardless of your financial health you are going to be hurt - unless your a Gates, Rockefeller type. Keep in mind that immigration and economic cycles are somewhat symbiotic. The economic problems this guy is talking about goes beyond borrowing for a house or credit card debt. I talks about global economic meltdown, where billionaires become millionaires and the rest out on the street.
Regional housing bubbles are ready to pop.
Believe me I know this... I do real estate, and I'm going to make lots of money buying up the houses that get foreclosed on when all these folks with zero, or paper appreciation equity suddenly disappears when those bubbles do pop.
All these foolish folks thinking "I gotta buy today".. most of them are going to wind up taking a bath by being underwater for 8 years or more when the values fall.. or are just going to end up losign the houses if they can't manage to wait out the down cycle before they are forced to sell.
If my tax rate weren't exceeding 50% I could become debt free before I'm 50! Everyone wants to blame everything but the source of the problem. Continually growing government taxation, taking bigger chunks of income (corporate and private) is driving our economic spending power into the ground.
Add to that the "keep up with the Jones'" attitude of many, and you have a recipe for disaster.
If you are paying 50% of your income in taxes, its time to hire a CPA and learn about income shelters.
"The real problem is that the same folks who squeal the loudest about people being eaten alive with credit card debt and bad decisions, are the same folks who tend to make people believe that they deserve nothing but the best and they should have it all. When I was growing up, people understood that if you lived beyond your means, you would end up in the street. Today, it's those who expect payment for goods and services that are getting kicked."
I feel it's a combination of people who used their credit to hang on to their homes and pay the bills during this last recession and then those living beyond their means being providing easy credit. I make enough to pay the bills but I have to say the cost of living has shot through the roof between energy and medical costs.
not in any major metropolitan or suburban area - either they have some other source of income or money, or are living in a rural area.
What makes you think it was any easier 30 years ago? Just a note from someone who was there, who remembers double digit mortgage rates, double digit inflation and housing price inflation that makes today's look tame. Saving for that first downpayment on a home was a real "bitch", but we did it.
But again, 30 years ago, most young people starting out didn't live off of credit cards --- most, including myself, didn't even have them. We also didn't pay $100/month for cell phones or a $100/month for cable TV or $30/month for internet service either.
The big thing today is credit cards -- and the rule of thumb is that if you have to use them to make ends meet, you are living beyond your means. Cut back.
Don't tell anyone. This will be our little secret.
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