Wall street crisis will effect the average joe? (student loan, expenses, creditors)
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Wall Street Crisis, Economic depression, government bailout, bad economy effects of average Joe, media out of touch with middle class financial situation
It seems the news media has been spending a lot of time stressing the fact that the current credit crisis on wall-street will effect everyone. Usually, when the media discuss things they put people "experts" on with different different view points. But every time I see it discussed, only one view point is given. That without the bailout, the average Joe is going to have all sorts of problems.
Now, the majority on congress are wealthy and the majority in the media are wealthy. Aren't these the people that stand to lose the most if the bailout doesn't get signed....
Anyhow, it reminds me of the Iraq war arguments. Where they tried to drive as much fear as possible into people.
Well many average Joe's have emailed or contacted their representative and expressed negativity towards this package.
I think the MSM is trying to sway the public to view this bailout of Wall Street as a "rescue of Main Street". I don't believe it for a moment..not much so far from government intervention has trickled down to the average Joe. It's all been to benefit the banks directly.
Location: Jonquil City (aka Smyrna) Georgia- by Atlanta
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Quote:
Originally Posted by Humanoid
It seems the news media has been spending a lot of time stressing the fact that the current credit crisis on wall-street will effect everyone. Usually, when the media discuss things they put people "experts" on with different different view points. But every time I see it discussed, only one view point is given. That without the bailout, the average Joe is going to have all sorts of problems.
Now, the majority on congress are wealthy and the majority in the media are wealthy. Aren't these the people that stand to lose the most if the bailout doesn't get signed....
Anyhow, it reminds me of the Iraq war arguments. Where they tried to drive as much fear as possible into people.
This is even more BS than that lie was! The FACT is that we are going to have a recession whether or not we fork over the cash to Morgan Stanley and Barclays. And it might be a nasty recession similar to 1981. But it will clean the sewage out of the economy and we will emerge from it better and stronger as a country in a year or so. The nasty recession in 1981 cleaned hyper inflation out of our economy for 25 years and counting. This will clean excessive speculation out of the stock and housing sectors that is long overdue.
Location: Jonquil City (aka Smyrna) Georgia- by Atlanta
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Quote:
Originally Posted by Lulu101
average joe may have smaller credit card limits if the worse predictions come true. (according to Suze Orman)
Average Joe probably needs smaller credit limits. We have been living off credit for 10 years and saving nothing. If you really "need" a 50 inch HDTV, then save up and buy it.
average joe may have smaller credit card limits if the worse predictions come true. (according to Suze Orman)
Yes "may" have. The problem is that what is happening right now is that creditors are now having to correctly price risk. No bailout is going to change the long term changes in the "credit crunch" as its about appropriately pricing risk.
Anyhow, what I find so odd about the media is that despite the vast public opposition to the bailout they don't have a single "expert" on their show speak out against it? Its not exactly hard to find economists that are against the bailout, at least in its current form.
But, when it comes down to it there is a just a huge conflict of interest.
Quote:
If you really "need" a 50 inch HDTV, then save up and buy it.
You know I'm amazed how many people have big new flat screens. The old type of TVs last forever. I was given someone's used hand me down 5 years ago and it still works perfectly! Basically, the majority went out and purchased a new expensive TV despite the fact that their old one was working just fine. I don't get that...
Average Joe probably needs smaller credit limits. We have been living off credit for 10 years and saving nothing. If you really "need" a 50 inch HDTV, then save up and buy it.
OMG, thank you. Someone on the news said something to the tune of if we go from a country that is used to borrowing to not borrowing it's going to be hard. Why did we get into that nasty habit of borrowing anyway? We really need to go back to a cash society. Credit and loans only bring trouble.
Location: Jonquil City (aka Smyrna) Georgia- by Atlanta
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Quote:
Originally Posted by carlitasway
OMG, thank you. Someone on the news said something to the tune of if we go from a country that is used to borrowing to not borrowing it's going to be hard. Why did we get into that nasty habit of borrowing anyway? We really need to go back to a cash society. Credit and loans only bring trouble.
The only place for credit I can think of in the life of most people is a mortgage and a car loan. Maybe a student loan for college. Everything else should be cash and carry.
The only place for credit I can think of in the life of most people is a mortgage and a car loan. Maybe a student loan for college. Everything else should be cash and carry.
Maybe college and house. Car should be cash. We've paid cash for cars for years now, they are not new but they run and run well.
I don't know when it changed... but dual incomes have become common and many families still have to live paycheck to paycheck for standard living expenses.
Many families that have higher incomes have also incurred a high level of education debt. So, for the "extras" families have had to resort to credit card and other debt.
When was it in the past? that a middle class American family could live off of a single wage? Easily pay off a car? Have a tv and a home and have stable and gainful employment for life?
Not going to happen these days. Two incomes, average home, basic household goods (btw, these things went way down in price relatively speaking - tvs, computers, appliances in the most part have dropped in price), health care, education payments, retirement savings (no more pensions), short-term savings and your already well on your way to living on the margin. Not to mention the instability of employment and the economy (emergency fund) and if you have children... wow... child care.
How in the world are households earning the median (48k) making it? Either the wealthy are grossly overpaid and wages are very poorly distributed... or people will have to incur debt just to survive.
Maybe it's a generational issue... because I feel that each generation since WWII have increasingly shouldered the burden of America's fall from grace.
-chuck22b
Last edited by chuck22b; 09-30-2008 at 05:04 PM..
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