Economic Unsustainability & Credit Deception

footfootfoot · 09-18-2006, 07:59 PM

Take notes, we'll see what happens soon.

I wonder the same thing. I have a friend whose house was insanely over assessed by the bank and he is leveraged out to infinity and beyond. Living on maxed out cards and a line of credit against his house which, if he had to sell, he might break even. A few bad months and homeboy is gonna be living in the woods.

I haven't had a credit card in over ten years. Never missed it, never needed it. I'll do without.

Elspode · 09-18-2006, 09:10 PM

I think the main point is that *everyone* is living on credit, not hard cash. There's nothing underpinning a significant portion of our economy except for perceived value. It is a brick and mortar version of the same kind of thinking that drove the dotcom boom/bust.

slang · 09-19-2006, 04:30 AM

Quote:

Originally Posted by Elspode

*everyone* is living on credit.

Most? Maybe, but not everyone.

Elspode · 09-19-2006, 10:20 AM

Damn you logical thinkers refuting my carefully thought-out, unsupportable blanket statements!

09-19-2006, 11:41 AM

Wasn't that why we had the Great Depression, because everyone was buying stocks on margin (a form of credit), and when the stocks went down they were still stuck paying the original higher price that they had assured the stock broker they would pay, assuming the stock would go up, except too many stocks went down instead?

Its kind of like Footx3's friend with the over valued house that he living off the inflated proceeds of. If he loses his job, he's going to have to sell at the real price, not the imaginary one.

On the bright side, living in the woods is not that bad - at least until winter comes.

09-18-2006, 07:59 PM	#1
footfootfoot To shreds, you say? Join Date: Aug 2004 Location: in the house and on the street-how many, many feet we meet! Posts: 18,449	Take notes, we'll see what happens soon. I wonder the same thing. I have a friend whose house was insanely over assessed by the bank and he is leveraged out to infinity and beyond. Living on maxed out cards and a line of credit against his house which, if he had to sell, he might break even. A few bad months and homeboy is gonna be living in the woods. I haven't had a credit card in over ten years. Never missed it, never needed it. I'll do without. __________________ The internet is a hateful stew of vomit you can never take completely seriously. - Her Fobs

09-18-2006, 09:10 PM	#2
Elspode When Do I Get Virtual Unreality? Join Date: Dec 2002 Location: Raytown, Missouri Posts: 12,719	I think the main point is that everyone is living on credit, not hard cash. There's nothing underpinning a significant portion of our economy except for perceived value. It is a brick and mortar version of the same kind of thinking that drove the dotcom boom/bust. __________________ "To those of you who are wearing ties, I think my dad would appreciate it if you took them off." - Robert Moog

09-19-2006, 10:20 AM	#4
Elspode When Do I Get Virtual Unreality? Join Date: Dec 2002 Location: Raytown, Missouri Posts: 12,719	Damn you logical thinkers refuting my carefully thought-out, unsupportable blanket statements! __________________ "To those of you who are wearing ties, I think my dad would appreciate it if you took them off." - Robert Moog

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09-19-2006, 11:41 AM	#5
marichiko Guest Posts: n/a	Wasn't that why we had the Great Depression, because everyone was buying stocks on margin (a form of credit), and when the stocks went down they were still stuck paying the original higher price that they had assured the stock broker they would pay, assuming the stock would go up, except too many stocks went down instead? Its kind of like Footx3's friend with the over valued house that he living off the inflated proceeds of. If he loses his job, he's going to have to sell at the real price, not the imaginary one. On the bright side, living in the woods is not that bad - at least until winter comes.

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