Global Economy.
By hardluck
@hardluck (375)
United States
October 13, 2008 1:56pm CST
Well, Obama finally said something I agree with. I still won't vote for him, not because he's a black man, but because he's a Democrat, but he was right about this. He said people are living above their means, and that's what caused the stock market problems we're having. My Grandpa always said that credit was the worst thing a poor person could have. I think most people live way above their means. If their friend gets a new car they think they have just got to get one to. A new car is the worst investment you can make, you drive it off the lot and go round the block, and it has drop in vaule, not to mention the interest on the loan you just took out on it. Now you have a car that is worth $20,000, and you have to pay $28,000 for it. If you brought a stock for $20,000 and a minute later you found out that it had drop to $12,000, you feel like you had been robbed. The only way I would buy a new car is if I had the cash money to pay for it, and then I don't think it wouldn't be a good investment, because I could never get the money back I had in it, only use. I got a friend that brought a new pick up truck about a year ago, he left the lot and came right to the house to bragg about it. All smiles and so happy, then just a few months later I called and asked him and his wife to go out and eat, and he said man I just can't aford it right now, you know with these truck payment and all. The same is ture with a house, with the cost of the house and interest on the loan, you gave way more than it's worth. I know everybody wants a house and does not want to rent one, but just because you can get $500,000 loan to buy a house, why not try to find a $50,000 instend of going to the limit. When people get a cedit card they think they have unlimited money, and they don't have to pay it back. I got a friend right now that has three credit cards, and uses one to pay the other. Were do you thinks he headed? Deeper in the hole. But he just can't see it, he tell me he is just using the system. Are you using the system or do you try to live with in your means?
4 people like this
13 responses
@jwfarrimond (4473)
•
13 Oct 08
I think nearly everybody these days lives beyond their means which as you rightly point out is the problem. My mother ran her household on a strictly cash basis, and what borrowing they did do was to buy high priced but essential household things and that was paid off as quickly as possible. Of course, no credit cards in those days (I'm talking about the 50's and 60's)
I've been no exception to the general spend-thriftiness in the past, but now I've brought it under control and I'm planning to be totally debt free by the end of next year - if all goes to plan. The trouble is, people don't realise that borrowed money is just an advance on income and taking income in advance means quite simply that there will be less disposable income later on. This is simple economics. There is nothing wrong with borrowing money as such, just so long as the future income is there to repay it without compromising disposable income. It's the banks failure to ensure that the people that they lend to are able to afford to repay, which has caused the problem. And just throwing money at it will not solve it either. That $700 Bn of taxpayers money that Bush is throwing at it will just vanish into a financial black hole as will the £500 Bn of British taxpayers money that our government is pouring into the banks.
2 people like this
@hardluck (375)
• United States
13 Oct 08
Thanks for your response, I agree with for the most part. And I was wondering were al that manoey they said was lost in the stock market went, and then I read that that was not real money, if so why are we putting $700 billion of real money in it? I know in my heart that some were there is someone getting rich off this money. I think a lot of it is going into Obama and McCain's pocket, You know they stopped running the race to get that bill pasted. I don't know maybe it just me.
2 people like this
@goldeneagle (6745)
• United States
13 Oct 08
you are partially right about credit being the worst thing a poor person can have...but you left out one word in that phrase...credit CARDS are the worst thing a poor person can have....No poor person can really afford a decent house...the only way they can get it would be to finance it. As for the cars, I have bought a couple of new ones, but the last vehicle I got was a used one. Let someone else take the hit on that depreciation, but even the used ones are hard for a poor guy to afford. Credit cards, however, are a curse from the devil himself. The average family has $15-20 thousand in credit card debt. I am in the same boat. I spend a couple hundred per month on credit card payments...I am trying my best to get them paid off, but with the price of everything else on the rise, I am finding myself BEHIND on my credit card payments. I am getting deeper in the hole right now, and I am going to have a hell of a time getting out...
2 people like this
@Joneer (23)
• China
14 Oct 08
nowdays, Many countries in the world have to face the problem that you described. what cause these serious problem?I think the developed countries' economic bubble play a important role. But they appealed intensively several developing country to deal with it ,it's shameful.
2 people like this
@lynettebyc (2416)
• China
14 Oct 08
I think it's the self-control ability of human being maybe. They compare and be greedy. If others have something, most of people will try to get if they have enough money or if they can make themselves think that they might have enough money and will be able to cope with it. Kinda of human nature. Just like me, i'm sitting in the office, i have to buy clothes, digital camera, cellphone, out of work need, but also because people around me all have these, if i don't, then there might be a problem get close to them and talk. I mean if i don't know anything about these products, how can i strike a conversation? The point is i can't put all my money to do this, let alone borrow lots of loan.
I'm trying my best to live happily, without comparison. Try not to care about others' belongings. As a poor man, i don't have that kind of economy ability to compete, just live my life
2 people like this
@taface412 (3175)
• United States
13 Oct 08
It is true that we as Americans rely too much on credit and do try to live above our means. It is partially because we are trained to think bigger is better and more is best...and partially because we want to give to our kids what we didn't have ourselves. And to top it off no one teaches us while in school about the responsibilty of credit and the card companies sure aren't doing it...they want your name on the dotted line and once it is you have now sold yourself to them for a high interest rate and high penalities and the possiblity of ruining your future investments if you are a naive, ignorant, or apathetic card holder.
They make it seem simple...by offering cash back bonuses and things like that. But no matter what the sole responsibility lies upon that 18 or older cardholder's signature. I know I got into debt while I was in college....mostly for books my grants, scholarships, and work money could not cover. ANd then again recently I got in debt with them for to cover living expenses such as medical, food and gas. Not everyone who gets into debt is doing it irresponsibily....after all I look at it this way I had to eat, live and be able to get to work....even though I knew it would cost me more. So it has taught me to live frugally and to think ahead.
Your friend needs to come to the realization that he is not using the system...the system is using him. And he needs to get out of it before it gets out of hand. Because it is a tailspin when that happens and the shock is almost unbearable.
2 people like this
@eaforeman6 (8979)
• United States
13 Oct 08
I wont vote for Obama either, because of the lack of experience, the scandals and I defintly do not agree with his ideals. I am trying to live very modestly. I am not spending alot and am not wasting alot. I think its just good to use good commone horse sense and be aware and be careful. I hope that the election will bring a new revision and I do think MCcain can and will make the difference. He has the knowledge and the experience. He will be a great president.
@kerriannc (4279)
• Jamaica
13 Oct 08
McCain will not make a good president. There are times when a person should give another inexperience one a chance. Here in Jamaica they vote out Portia because according them Bruce is more eloquent with words and now what is happen never did under the uneloquent hands of Portia. This country was bless and moving forward.
I think that it is because Obama is black and this is the reason alot of Americans does not want to vote for him. Palin is not a good running mate for McCain and if he can make this stupid mistake what he wouldn't make while he is in office. He will continue with Bush stupidity which the world does not like nor want.
1 person likes this
@hardluck (375)
• United States
13 Oct 08
Thanks for your response. I to live a modest life. I worked and saved the money and got a track of land, and then I saved and brought a used mobile home. Maybe it's not the nices place on the block, but I own it free and clear. While the folks around me got new doublewides, and mouthly payments. I'm happy with mind and would not trade places with none of them. I drive an old truck and get there just the same as my friend with the new one, would not trade plases with him. I have no credit card, and would not trade places with my friend with three.
2 people like this
@taface412 (3175)
• United States
13 Oct 08
kerrianc I know this is not a political discussion but i have to say that the White House should not be a place of job training while in office serving as the President. Obama has been known to turn his back on allies (Rev Wright and others who got him into politics) when the stuff hits the fan....we witnessed it publicly on tv when he first defended rev wright (which was stupid b/c all he had to say was ask him about it) and then turned his back on his long time friend....his lack of experience should be questioned no matter how much the supporters of him (and I am quote unquote not saying Obama said this, but his supporters) accuse anyone who questions these tings to be prejudiced. This is an election not a political statement time which it seems to have become.
We need someone who has integrity, honor and puts his country first. There is only one guy who fits that profile.
2 people like this
@Hatley (163781)
• Garden Grove, California
14 Oct 08
hi hardluck well now variety is the spice of life so I one of your probably despised Democrats will vote for Obama so there I said it. that is just my own opinion. any way I am trying to
live well with in my means. I once was a credit card idiot, and I sure did learn the error of my ways. Now I pay cash and if I havent got the money for something I want or need to buy, I just wait until I do, or I go without. That way I am no longer in debt and can rest easy knowing this.If we all would do this our economy would not be in the mess its in now. lol lol lol.
@cbreeze (1205)
• United States
14 Oct 08
I think we can all use this advice. The trend was for mini mansions. Now people are realizing that it isn't worth it and are downsizing. You don't need the biggest house, the biggest most expensive car, the most expensive designer clothes. Sometimes it's best to be content with what you have.
@RhythmWalker1 (825)
• United States
14 Oct 08
In my neck of the woods, we call it "keeping up with the Jones" and
"biting off more than we can chew". That has and will always happen.
Regardless of that human mistake we all make, I don't see that as the total
problem with this economical crisis.
What I see is, bridges to nowhere, monuments, government job increases,
raises being given to government employees (after hours), a WAR for no reason,
and too many people with an inside scoop to what to invest in and when to do it.
I lay the blame on everyone in DC and involved with the Stock Market.
All of those things were done at the cost of the tax-paying American who supports
a government that is raping them every day. No MORE No LESS!
I will vote for Obama because I like the man and his ideas.
I don't have a credit card, never have had one and get by the best way I can.
Material things have no meaning to me. The injustice that is being done and all
the cover-ups we are having pulled over our eyes by our politicians does!
Wouldn't we all like to have the salary that a member of the Congress makes,
because we pay taxes?
1 person likes this
@fasttalker (2796)
• United States
14 Oct 08
I agree that people have been living way beyond their means or above their raising as my grandfather used to say.
I have a 3 acre piece of land that me and my husband saved for and purchased 20 years ago. We built the home we live in now from the ground up. We rented an apartment and saved and it took us 4 years to get it completely finished. We own it free an clear and owe nothing for it now.
I have been hounded by mortgage companies for years wanting me to take out a loan on my home. I could have taken a loan out on it but because we thought ahead a little bit when those times came that we were unemployed and times got hard we had the peace of mind that we at least owned our home.
We have two nice vehicles that were used when we bought them and when they wear out we will more than likely buy another used vhicle. I agree with your idea about there is nothing that goes down in value more than a new vehicle.
We never went out and bought our kids (both adults now) new vehicles to help them "fit in" with the crowd. They both took on part time jobs and we met them half-way. They decided what vehicle they wanted and saved up half of the money and we gave them the other half. They were both responsible for their own insurance, upkeep and gas in their vehicles.
My oldest son is now in the process of purchasing a piece of property that he found for a good price because the people that own it owe 5,000 on it and can't pay it. So they have offered him the land just to pay it off and get them out from under the debt.
I don't know if he will do the same thing we did or not but so far seems to be level headed about managing his money so maybe we passed down something good! LOL
1 person likes this
@YONGNIAN1987 (157)
• China
14 Oct 08
I am a student from China ,majoring in international bussiness and trede.As a Chinese ,I think cultrue plays a very important role in our daily life,most of the Chinese won't spend the money they haven't earned ,we have a good habit of saving money,we will spend money carefully and planfull .even the cridit card now becoming more popular in China ,we can not understand how it can give us the profit,just only replace the cash ,it's not a good choice!
@jorjh_and1 (83)
• Romania
14 Oct 08
Well i`m not from the US so i really don`t have a problem with the continuing battle between Republicans and Democrats, i have a problem with the entire global mentality that is screwing our economies one by one. For the last 50 years or so people have started to want more from their lives. In the middle ages people had to PAY the rich folk to work their land and get a tiny percent of the crop, and they had no choice. Later after the industrial revolution people divided into the 3 classes we all know, poor middle and rich. But now with all the credits you can get from banks everyone has the means to buy a fancy car a big home, sure they`ll pay for them a few generations but who cares? Everyone now has the need to show off and be better then the person beside him. The increasingly growing number of insurances and credits in the US caused the entire system to collapse and now we all feel the repercutions and maybe just becoming aware that things can screw up badly we will try to change something in owr greedy ways of life. Cheers.
