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Looking all financial problems going on right now, I am one big cause of it is the most Americans spend money like crazy. There seems only a handful of financially responsive people. Others just go out buy things they really don't need, even if they don't have money they just get Credit Cards, Loans, etc. Of course, most go buy expensive houses, multiple luxury car, phones, etc they really can't afford. Also, they don't have emergency cash. Which all leads to current problems.
I doubt, the problem will go away UNLESS everyone start acting financially responsible. People need to live within their incomes. They should buy only what need and put rest into savings / retirement funds. The US would be much better off if everyone was living a financially responsive life. Problem is people get attempted to buying what they want (Luxury house, cars, vacations, etc). Even if current problem is solved, it will come right back unless these irresponsible change their behavior!
It’s true. Why do people go and spend three thousand dollars on a refrigerator? Why do people go and buy a 50in television? People have forgotten what it means to be thrifty. It might be because of the easy credit they can get to buy now and pay later. If one has cash they are more likely to haggle and shop around for the items they need. When using cash they stay within their budgets. With credit they are more likely to over purchase and get in trouble paying their monthly installments. Instead of saving money, customers will use their hard earned cash to pay the high interest rates on their purchases.
well, the government certainly does not ecourage either saving or responsible behavior. Do you see the stimulus checks they are sending out and the irresponsible people they want to bailout, those that lived large on borrowed money? What sort of message is that sending to our society? It tells people that the government will shield you from any consequences for your bad behavior.
Looking all financial problems going on right now, I am one big cause of it is the most Americans spend money like crazy. There seems only a handful of financially responsive people. Others just go out buy things they really don't need, even if they don't have money they just get Credit Cards, Loans, etc. Of course, most go buy expensive houses, multiple luxury car, phones, etc they really can't afford. Also, they don't have emergency cash. Which all leads to current problems.
I doubt, the problem will go away UNLESS everyone start acting financially responsible. People need to live within their incomes. They should buy only what need and put rest into savings / retirement funds. The US would be much better off if everyone was living a financially responsive life. Problem is people get attempted to buying what they want (Luxury house, cars, vacations, etc). Even if current problem is solved, it will come right back unless these irresponsible change their behavior!
Yes, we know.
More people are saving and paying off debt, but that slows down the economy even more!
The bottom line is that the system is carrying too much debt and the interest on that debt is diverting money from the economy. Everything is slowing down. Just wait till January!!!
Even if current problem is solved, it will come right back unless these irresponsible change their behavior!
True. It used to be that people had 1 TV and 1 car, or 2 cars if they had 2 working parents. Now everyone seems to expect a computer, TV, and car for everyone in the family.
I was amazed at the open houses I went to when looking around and about everyone had a bigscreen TV. Even the townhouse where the couch was like 5 ft away.
well, the government certainly does not ecourage either saving or responsible behavior. Do you see the stimulus checks they are sending out and the irresponsible people they want to bailout, those that lived large on borrowed money? What sort of message is that sending to our society? It tells people that the government will shield you from any consequences for your bad behavior.
Good hard working people shouldn't need government to encourage responsible behavior. In fact, I highly doubt they government will start making people live more sensible lifestyles and save money. Waiting for government to say "stop spending and save" isn't going to anywhere, people to start doing that on their own...
I completely agree. This is one reason I have no credit cards. I would be urged to spend, spend, and spend some more. I do own 2 vehicles and a big screen. The big screen I have owned for almost 6 years and need 2 vehicles due to my work schedule conflicting with the kids activities that the wife needs to take them to. I am one that wasgoing to buy a house on one of the Adjustable, Interest Only type of plans but decided against it due to the worst case scenario......Wow I got lucky by deciding not to buy. I think the overnment should not be bailing out these industries. The American public is paying so these places can fail again. It is almost like we are paying for the goods they sell 2 times.......
Looking all financial problems going on right now, I am one big cause of it is the most Americans spend money like crazy. There seems only a handful of financially responsive people. Others just go out buy things they really don't need, even if they don't have money they just get Credit Cards, Loans, etc. Of course, most go buy expensive houses, multiple luxury car, phones, etc they really can't afford. Also, they don't have emergency cash. Which all leads to current problems.
I doubt, the problem will go away UNLESS everyone start acting financially responsible. People need to live within their incomes. They should buy only what need and put rest into savings / retirement funds. The US would be much better off if everyone was living a financially responsive life. Problem is people get attempted to buying what they want (Luxury house, cars, vacations, etc). Even if current problem is solved, it will come right back unless these irresponsible change their behavior!
The problem is that we don't produce goods anymore so the "spenders" are the ones that drive the economy. The prudent guy who saves and buys a new car every 10 years and lives in the same house for 20 years is a detriment to the this "great" consumer economy. As much as you laugh at your neighbor who is always in debt, buying things he can't afford on credit, he is the one driving the growth in the economy over the past 30 years. If we all start saving only, we make the recession worse. Look at the automakers when people quit buying.
It’s true. Why do people go and spend three thousand dollars on a refrigerator? Why do people go and buy a 50in television? People have forgotten what it means to be thrifty. It might be because of the easy credit they can get to buy now and pay later. If one has cash they are more likely to haggle and shop around for the items they need. When using cash they stay within their budgets. With credit they are more likely to over purchase and get in trouble paying their monthly installments. Instead of saving money, customers will use their hard earned cash to pay the high interest rates on their purchases.
i agree with the premise of the thread
i will admit i bought my 52 inch lcd and it was worth every penny
however i paid in cash and can more than afford it
duh, American economy relies heavily on consumerism. Sadly, that can backfire on the very same consumers as we're seeing now. I think Obama should start a revamped New Deal, implementing public spending and Government control over the economy. Once the economy booms again, loose the control
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