Are We Headed Toward Economic Collapse?

[JC5123]

Bankrupt yes, collapsing no. Like a lot of people I know. Most don't possess enough cash to fill their gas tanks. If they didn't have credit cards they'd be walking. If most had to pay off their liabilities they would be well into the minus column with zero assets. The people in this country are living as bad as the government. The nation, much like it's people, keeps going as if nothing is wrong. The only "advantage" the government has is it owns the printing presses. That is quickly becoming it's major liability.  Bill T.

You are exactly right. Government and credit companies have made it WAY too easy to get credit. As a result people have abused credit, living way beyond their means for decades.

[billt]

You are exactly right. Government and credit companies have made it WAY too easy to get credit. As a result people have abused credit, living way beyond their means for decades.

Not only that, but they feel as though they have a right to simply walk away without any recourse. I saw an article on the news how people in many states were complaining that after they walked away from their mortgage which was higher than what their house was actually worth, they were shocked to find out the lender could in fact sue them for the remainder of what they owed after the foreclosure went through. Why shouldn't they be sued? They owe the money pure and simple.

If I borrow money and don't pay it back for what ever reason, the person or bank I owe it to can place a legal judgement against me for the full amount owed. Why should a home mortgage be any different? Borrowed money is borrowed money. Pay it back, or else face the consequences. People have great difficulty in grasping this simple concept that has been in place for decades. There never was any type of guarantee in place that stated your house would always be worth more than what you paid for it. Especially if you overpaid to begin with. You made the decision to purchase it, not the bank.  Bill T.

[tombogan03884]

Bankrupt yes, collapsing no. Like a lot of people I know. Most don't possess enough cash to fill their gas tanks. If they didn't have credit cards they'd be walking. If most had to pay off their liabilities they would be well into the minus column with zero assets. The people in this country are living as bad as the government. The nation, much like it's people, keeps going as if nothing is wrong. The only "advantage" the government has is it owns the printing presses. That is quickly becoming it's major liability.  Bill T.

I have to disagree with this part. The current rise in prices of everything is due to inflation caused by the Gov. trying to print its way out of debt. We are essentially in the same situation as Zimbabwe, or post WWI Germany. Since no one is willing to give up THEIR goodies, the dollar will soon have more value in the bathroom than in the store.

[billt]

We are essentially in the same situation as Zimbabwe, or post WWI Germany. Since no one is willing to give up THEIR goodies, the dollar will soon have more value in the bathroom than in the store.

Not quite. We're not as bad as Zimbabwe. Never have been, never will be. Their currency is worth nothing because they produce nothing. Nothing except goat herders and poachers. Our manufacturing is down, but we still have a long way to go to catch Zimbabwe. They have nothing to offer the world. If an earthquake swallowed the whole country tomorrow, no one would miss them. They'd miss us plenty. Especially China and the whole Pacific Rim. We're not infallible, but look at Europe. They've been in the $h!tter for years and they are still here. Zimbabwe....... Well, they never much were to begin with?  Bill T.

[tombogan03884]

They used to produce metals gems and agricultural produce.  See what happens when a black socialist takes over ?
Don't say we'll never be there, we don't produce any where near as much as we used to.

[Sponsor]

[billt]

See what happens when a black socialist takes over ?

I concede damnit, you're right, you're right!!! What the hell was I thinking!!    Bill T.

[cookie62]

Not only that, but they feel as though they have a right to simply walk away without any recourse. I saw an article on the news how people in many states were complaining that after they walked away from their mortgage which was higher than what their house was actually worth, they were shocked to find out the lender could in fact sue them for the remainder of what they owed after the foreclosure went through. Why shouldn't they be sued? They owe the money pure and simple.

If I borrow money and don't pay it back for what ever reason, the person or bank I owe it to can place a legal judgement against me for the full amount owed. Why should a home mortgage be any different? Borrowed money is borrowed money. Pay it back, or else face the consequences. People have great difficulty in grasping this simple concept that has been in place for decades. There never was any type of guarantee in place that stated your house would always be worth more than what you paid for it. Especially if you overpaid to begin with. You made the decision to purchase it, not the bank.  Bill T.

Almost any house is worth less than the total loan, unless you put at least 20% down. By the time you ad interest most people are "under water" so to speak. That is the problem with these 0% or low down paymen loans. Most young people had no ideal that some day there house might lose value. All they saw was mom and dads house double or triple in value, what they didn't think about was they bought the house 30 or 40 years ago.

[JC5123]

Almost any house is worth less than the total loan, unless you put at least 20% down. By the time you ad interest most people are "under water" so to speak. That is the problem with these 0% or low down paymen loans. Most young people had no ideal that some day there house might lose value. All they saw was mom and dads house double or triple in value, what they didn't think about was they bought the house 30 or 40 years ago.

It's that damn "truth in lending disclosure" that no one reads.

While at a glance you would think I'm in good shape. 150,000 mortgage on a house worth 200,000. However if you look a little deeper you would find that the actual numbers put me owing more like 230,000 by the time it's all said and done. Am I underwater? Not really, I can afford the payments, and a bit more. (thank you low interest rates) But in the end I will probably end up paying much closer to what it's worth, that what I technically owe.

Most young people don't read the fine print anymore. There are so many agreements that we just click past when we do anything online. I think if most of them would stop and read some of those agreements, they would be shocked at what they are actually agreeing to.

This is exactly how they skew the numbers on the debt and deficit. If a truth in lending disclosure were done on the national debt, I bet it would look more like 100 trillion in debt. Not 14.1