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1. Looking at a data set within an economically rational context across a lengthy time horizon isn't an example of normality bias. FE your up uptick trend line is short duration the downward trend I noted spans roughly 15 years.
2. We had 25 bank failures in '08, 3 in '23 and proportionally the loses in '08 were much worse.
3. The housing market was much worse across the '08 bust than now.
Corporate bankruptcies have doubled in the past year, countries de-dollarizing; my house is way over-valued. I truly hope I, and many others are wrong; yet recessions are a normal phase in our economic cycle.
Consumers normally rack up credit debt in quarter 4, then pay it down quarter 1; this year they did not.
They are broke, opting to make vehicle and insurance payments instead.
On the housing market, what specifically leads you to believe the conditions were worse in 08'?; other than higher inventory from the housing boom.
In 2008, the entire economic system was on the verge of collapse; the first time since the Great Depression. I thought it odd at the time that my neighbor told me to take out cash to keep at the house; he was a bank executive. It was after things settled down and the new administration came in that Hank Paulson was on Charlie Rose and mentioned that there was only two days worth of cash available at banks and the solvency of most of them was at risk.
Credit cards are nasty little-buggers that I refuse to use. Not that I would not use them responsibly, but I detest their premise. I can afford to pay for the things I purchase, therefore I do not need to take out a small loan to purchase a loaf of bread and a dozen eggs.
And, the cash-back is a gimmick! They give you one percent back, while making two or three percent, because everything you purchase has been marked up three or four percent to cover the merchant processing fee the card companies charge the merchant. I would rather receive a three or four percent cash discount! I wonder how much credit card processing fees affect inflation?
I only use the credit card for the cash back. You can also go thru cash back sites to get more cash back. I would never keep a balance on the card and pay the high interest so I pay it off each month. Chase has 1.5% cash back on everything and 5% in certain categories. I can't imagine my purchases not getting me the extra money back.
Supposedly there are 183 million Americans holding a credit card, so that's $5,082 per. Just a mind-blowing average. We must be wasting a ton of money on interest payments alone.
Corporate bankruptcies have doubled in the past year, countries de-dollarizing; my house is way over-valued. I truly hope I, and many others are wrong; yet recessions are a normal phase in our economic cycle.
Consumers normally rack up credit debt in quarter 4, then pay it down quarter 1; this year they did not.
They are broke, opting to make vehicle and insurance payments instead.
On the housing market, what specifically leads you to believe the conditions were worse in 08'?; other than higher inventory from the housing boom.
I am one of these statistics. I am buried in CC debt. Over 40K. And I once considered myself to be pretty money smart. So how the heck did this happen to me? The balances just seemed to snowball out of nowhere on me and I ended up in a situation where there simply isn't much money left over to pay over the minimum balance. If I only pay the minmum, it will take me 20-30 years to be debt free and that's assuming I never use the cards again.
The credit card companies have carefully designed this trap for Americans usually psychological techniques and math. I believe they have it calculated to the penny how much credit limit to give a person so they will likely fall into this hole of being unable to dig out of debt. The credit card companies offer cash back because they want you to have the mindset of using your card to pay for everything. But unless you spend time every nite and watch your spending, it is extremely easy to run up a balance even with small purchases. Can't pay off the balance at the end of month? No problem, just pay the minimum and get another card with that free interest period.
I'm willing to bet that those here bragging about how they are so responsible and always pay off their card on time are people who are wealthy or at least never have to live paycheck to paycheck so of course, you can pay off the balance. The whole financial system really only helps the rich get richer. And if you are not wealthy, ask yourself this question honestly:
If you went out with friends to a restaurant and saw that the prices would exceed your budget, would you honestly tell your friends that sorry I can't come because I can't afford it or just charge it your card and worry about paying it off later? You know most people would charge. That's the culture the CC companies want. Buy now and pay later mentality. They are the only winners. I throw away $1100 of my hard earned money every month to their interest payments. It's disgusting.
I had that happen to me when I was very young. At 18, my boyfriend at the time arranged a friend who had a car lot, to let me pay mostly cash for a car, and leave $500 for me to pay off as a loan, in order to build credit. But when it was paid off, I had so many credit offers I couldn't keep them straight. I'm 18, and have a low wage job pumping gas (I brought home $62 a week and paid $50 a week to a friend's mom who let me live there). I used the credit cards for everything I couldn't afford, which was everything including underwear.
Before I knew it I was waaay over my head. I called every company and tried to see if they could lower my minimum payment, all of them said no. So in the end I felt I had no choice but bankruptcy.
I did build my credit back up, but I didn't over use it...until I was out of work for 10 months after a back injury, until my surgery. I had to use my entire Roth and all my emergency savings, but it still wasn't enough as I had to Uber to every PT chiropractor and doctor's appointment and had $14,000 in out of pocket costs. 6 or 7 years later and I'm about halfway done paying it off, but of course I won't have any more time to save all I lost and would have saved if I had been able to work. And I have arthritis everywhere, so taking on medical debt is going to be part of my future, like it or not.
As they say a government is a reflection of it's people.
Both spend way more than they take in....living the high life deep in debt.
Not necessarily. Many people are struggling financially so of course they will be more in debt. Doesn’t mean they are living any kind of high life. There was a period during the plandemic that we were putting groceries on credit cards bc my husband wasn’t making a bonus which we relied upon to pay bills and put food on the table. This was right after I finished a certificate program and was going to be looking for a job but spring 2020 was not a great time for that….
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