Live Now, Pay Later
Imagine that you have a lot of debt; credit cards up the wazoo, a big auto loan and student loans totaling in the tens of thousands of dollars. In other words, add all that debt together and you are one broke-ass-sum-bitch! Then, you get out of school, but there are no jobs available in your chosen field. So, you head off to McDonald's to flip some fries, cause that's all there is. Oh, and one more thing, even that's part time.
But there are other problems, your rent is sky-high, as well. Why? Because the Government, through The Federal Reserve, has lowered interest rates to virtually zero for member banks, in the hopes that these banks can get you to borrow money and buy a house and other things. All, in order to help drive the economy. Unfortunately, you are already leveraged to the max with debt. So, you can't borrow shit, forcing the banks and the government to lower interest rates even further—and then rewrite the laws so it's easier to borrow with even less collateral. But don't worry, cause some well-meaning idiot with a placard says, "People have less debt than in years gone by, vote Democrat or Republican." But, it doesn't really matter, because both parties love to spend your money, so what's the difference. And, it is your money they’re spending.
What they aren't telling you, though, is just how many bankruptcies and debt-right-offs had to occur to get the average Americans debt load to a manageable level, so Americans could start borrowing again.
You see, in this new economy, it's your responsibility to spend, whether you can afford to or not. It's like reincarnation, with the banks as god and politicians as high-priests resurrecting debtors for a new round of borrowing (or high priestesses, sorry for the sexism and the gender bias, blah, blah, blah.)
Here's the problem, the average American's housing costs are, today, nearly half their income, this is virtually unprecedented. And, with the price of food rising faster than a hot-air balloon, inflation, I mean real inflation, is eating them alive. People also have 6 and 7 year auto loans, but their car is devaluing faster than a rocket car trying to break a land speed record. So, by the time they pay it off—if they pay it off—it's essentially worthless. There are also fewer auto mechanics working, which makes repairs of any kind, precipitously expensive. But hey, they got a zero down loan and borrowed the max to have that car they always imagined. Add the housing loans, the student loans and the credit cards back into the mix and you have a financial catastrophe in the making. Where does this all lead? In an ever narrowing circle, like a dog chained to a pole. There is only one thing that can happen, and it should be obvious. If it isn't obvious, well, what can I say.
Mark Magula
But there are other problems, your rent is sky-high, as well. Why? Because the Government, through The Federal Reserve, has lowered interest rates to virtually zero for member banks, in the hopes that these banks can get you to borrow money and buy a house and other things. All, in order to help drive the economy. Unfortunately, you are already leveraged to the max with debt. So, you can't borrow shit, forcing the banks and the government to lower interest rates even further—and then rewrite the laws so it's easier to borrow with even less collateral. But don't worry, cause some well-meaning idiot with a placard says, "People have less debt than in years gone by, vote Democrat or Republican." But, it doesn't really matter, because both parties love to spend your money, so what's the difference. And, it is your money they’re spending.
What they aren't telling you, though, is just how many bankruptcies and debt-right-offs had to occur to get the average Americans debt load to a manageable level, so Americans could start borrowing again.
You see, in this new economy, it's your responsibility to spend, whether you can afford to or not. It's like reincarnation, with the banks as god and politicians as high-priests resurrecting debtors for a new round of borrowing (or high priestesses, sorry for the sexism and the gender bias, blah, blah, blah.)
Here's the problem, the average American's housing costs are, today, nearly half their income, this is virtually unprecedented. And, with the price of food rising faster than a hot-air balloon, inflation, I mean real inflation, is eating them alive. People also have 6 and 7 year auto loans, but their car is devaluing faster than a rocket car trying to break a land speed record. So, by the time they pay it off—if they pay it off—it's essentially worthless. There are also fewer auto mechanics working, which makes repairs of any kind, precipitously expensive. But hey, they got a zero down loan and borrowed the max to have that car they always imagined. Add the housing loans, the student loans and the credit cards back into the mix and you have a financial catastrophe in the making. Where does this all lead? In an ever narrowing circle, like a dog chained to a pole. There is only one thing that can happen, and it should be obvious. If it isn't obvious, well, what can I say.
Mark Magula