The economic hustle
Just reflecting tonight on fears that the economy is built on a house of cards and could get blown over by the next storm.
I have to wonder about the role of the federal reserve, and the government. Elected leaders like the spin the economy up, ascentuate the positive and all that, keep people's faith that the run away train can keep chugging along.
You could say I fell for it, taking on a mortgage that looked good, a 5-year ARM, in 2003, going to adjust in August 2008. I'm not worried yet, still like my choice, but still will be happier when I can pay off my smaller mortgage next year.
I wonder about all the debt out there, the leveraged investments, those who try to beat the market, borrowing to invest, as well as those who just saw "free money" in their home values to borrow against, or worse, just those who get pulled into "easy credit" of credit cards and keep sliding further over their heads.
I can't figure any of them, and yet it's bad for ALL of us if these risk-takers fail. I wonder about the responsility of government (and the fed) which encourages risky borrowing to keep the economy rolling. AND of course the probability that the government will BAIL out those foolish investors if things turn sour - again we all pay for the extremes of others - I suppose you can say we all benefit when the high rollers gamble and win - I don't know.
I think of "time management", my own ability to let obligations slide, thinking I can catch up. At least "time debt" has some limit and the COST is a less fun future when I have to face my negligence or turn down fun stuff because of needed work.
Debt is much more scary - how many "work hours" can people borrow? Just imagine - $20,000 in credit card debt, 10% interest, perhaps repaying total of $60,000 with all interest changed over 15 years. Take an average wage of $20/hr. That's 3000 hours of debt - 1.5 YEARS of debt.
STUPID people talk about "tax free day" when they've hypothetically paid off their taxes for the year. How about a "debt interest free day" of the year?
I keep playing the game, we all do, but I'm sad we can't do better. When our day of reckoning comes, who will lose out? Who will whine its not fair? Blame is with all of us, even us tightwads.
Okay, I'm done complaining. But get to it people!
I have to wonder about the role of the federal reserve, and the government. Elected leaders like the spin the economy up, ascentuate the positive and all that, keep people's faith that the run away train can keep chugging along.
You could say I fell for it, taking on a mortgage that looked good, a 5-year ARM, in 2003, going to adjust in August 2008. I'm not worried yet, still like my choice, but still will be happier when I can pay off my smaller mortgage next year.
I wonder about all the debt out there, the leveraged investments, those who try to beat the market, borrowing to invest, as well as those who just saw "free money" in their home values to borrow against, or worse, just those who get pulled into "easy credit" of credit cards and keep sliding further over their heads.
I can't figure any of them, and yet it's bad for ALL of us if these risk-takers fail. I wonder about the responsility of government (and the fed) which encourages risky borrowing to keep the economy rolling. AND of course the probability that the government will BAIL out those foolish investors if things turn sour - again we all pay for the extremes of others - I suppose you can say we all benefit when the high rollers gamble and win - I don't know.
I think of "time management", my own ability to let obligations slide, thinking I can catch up. At least "time debt" has some limit and the COST is a less fun future when I have to face my negligence or turn down fun stuff because of needed work.
Debt is much more scary - how many "work hours" can people borrow? Just imagine - $20,000 in credit card debt, 10% interest, perhaps repaying total of $60,000 with all interest changed over 15 years. Take an average wage of $20/hr. That's 3000 hours of debt - 1.5 YEARS of debt.
STUPID people talk about "tax free day" when they've hypothetically paid off their taxes for the year. How about a "debt interest free day" of the year?
I keep playing the game, we all do, but I'm sad we can't do better. When our day of reckoning comes, who will lose out? Who will whine its not fair? Blame is with all of us, even us tightwads.
Okay, I'm done complaining. But get to it people!
posted by Ares Olympus at 7:25 PM
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