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It is time to reject the credit based economy that has been promoted by the banks, and has resulted in the financial devastation we see today. The current system, designed by the banks for the benefit of the banks, drains massive amounts of capitol from the system, and puts working class Americans in a status of working slaves. The amount of money paid in interest can be as much as 40% the cost of furniture or appliances, 50% of a new car and 200% of a house. Credit has become a drug for consumers, promising a better lifestyle today, and delivering a lower lifestyle overall. Credit for most consumers is a trap that drains huge amounts of their wealth, hundreds of thousands of dollars, over their lifetime. We must realize that the days of making easy profits from bubble driven real estate and stock speculation are over. In an economy of high unemployment and stagnant wages, making every dollar count is essential to prosperity. We can no longer afford to give large percentages of our lifetime earnings to rich bankers. The reality of the situation is that we are very much in the same situation as Japan 20 years ago. Our banking system is awash in debt being carried on the books at values that are pure fantasy. Our real estate valuations are too high for working class people to afford. We are facing a decade, possibly two, of economic stagnation. The difference between those who prosper and those who do not will be the discipline to resist purchasing things we can not afford, and learning to save, invest, and purchase wisely.
Location: 23.7 million to 162 million miles North of Venus
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Quote:
Originally Posted by Pitt Chick
Gee.. NO WAY I am giving up CCs.
I pay no fees, pay no interest and get nice perks!
OP, what are you proposing should be done, and how? That the credit system itself be outlawed, that people should just drop off the credit grid, or other?
I doubt that the credit system would ever be outlawed. Many people would probably not prefer the barter system for financial transactions. Dropping off the credit grid may work for some, or so they like to think, but doing so can create many other problems.
I agree with the OP.
Society was a much better place when we had to save and earn what we had.
The days of, if you don't have the cash to pay for it, then you do not need it, were in fact
so much easier. The people were more appreciative of what they had. And we sure didn't live in
*super sized* worlds.
Society was a much better place when we had to save and earn what we had.
The days of, if you don't have the cash to pay for it, then you do not need it, were in fact so much easier.
The credit and debt system began thousands of years ago. It wasn't just 25-50, or even 100 years ago.
The credit and debt system began thousands of years ago. It wasn't just 25-50, or even 100 years ago.
I'm with Pitt Chick
I didn't insinuate that it was recent. The fact still remains that people are living beyond their means and can't afford what they have. That is a recipe for disaster.
There was a time, when people saved money and paid for what they wanted/needed. That is when credit/debit worked the way it should. And in that time, society didn't have so many of the problems it does today.
And while you may agree with pitt chick, there is no such thing as free money.
Unless you are a bank or a mega business there is no such thing as free money.
Its not free money, the stores have to mark up their prices due to the merchant fees charged by the credit card companies. But....so long as everyone else is doing it you're losing money using cash instead of rewards card.
I didn't insinuate that it was recent. The fact still remains that people are living beyond their means and can't afford what they have. That is a recipe for disaster.
There was a time, when people saved money and paid for what they wanted/needed. That is when credit/debit worked the way it should. And in that time, society didn't have so many of the problems it does today.
And while you may agree with pitt chick, there is no such thing as free money.
Some people have always lived beyond their means. Some people have always saved up and paid cash for things. It's as old as time.
Back in the 1600's Old Uncle English got thrown out of his house and put in debtor's prison. His relatives in Italy never heard about it.
Now we hear *everything* immediately. And it's shouted repeatedly at us from media.
(Maybe that's part of the problem. Everyone thinks everyone is in trouble.)
As for free money ... what do you consider not free? I pay no annual fees, use the bank's money to buy something, don't pay the bank for 3 to 4 weeks, pay no interest, plus I get 4 to 10 free hotel nights a year. Which I gladly use Are you saying it's not free because credit cause higher prices? No, higher prices are caused by supply and demand.
Maybe we'll just have to agree to disagree, since I consider that free. It's not my problem if other people can't manage and aren't getting their freebies.
Credit is not bad, it just like most things can be used poorly or used well. Anything you use credit on should have the ability to better your finances, if it is not likely to make your financial life better than you should not use credit. But removing credit from the system is throwing out the baby with the bath water. Without credit how does a kid from a low income family start a business, how do they purchase their first car? Should people save for a home for say 20 years instead of taking on a mortgage...despite the fact that their PITI payments would be less than equivalent rent?
Credit if used well is rather powerful, credit when used poorly is rather destructive.
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