December 1, 2008

Will we ever get our debt party back on? Or is it over forever?

10 comments:

Anonymous said...

Dec 1 (Reuters) - The U.S. credit-card industry may pull back well over $2 trillion of lines over the next 18 months due to risk aversion and regulatory changes, leading to sharp declines in consumer spending, prominent banking analyst Meredith Whitney said.

The credit card is the second key source of consumer liquidity, the first being jobs, the Oppenheimer & Co analyst noted.

"In other words, we expect available consumer liquidity in the form or credit-card lines to decline by 45 percent."

http://www.reuters.com/article/marketsNews/idINBNG2412320081201?rpc=44

Anonymous said...

I played by the rules, bought a modest house, 30 fixed that I can handle the payment with no problem. But if I have to move next year and can't sell it, I might send the keys back to the bank. The bank told me that I did not need a down payment (which I had and then some) Its not" fair" that these crooks have ruined the market and loans and now WE have to pay for it. I think the gov and banks are really scared that people like me just might stop playing the FIXED game.

Anonymous said...

Ask Nick, he is a genius.

You'll be able to identify him easy

He'll be the one with the orange jumpsuit and leg chains on...

Lawrence Yun said...

"But if I have to move next year and can't sell it, I might send the keys back to the bank."

Don't worry about it.

Don't you know interest rates are at an all time low? Market conditions vary from town to town. There's never been a better time to buy, foreclose, leave, or sell a house.

And Sussane will help extort, I mean navigating your way through your legal minefield.

Anonymous said...

They already have a 40% default rate on the new and improved rewritten loans ,so what does that tell you about how the gaming of the system continues and the homeowners are just crooks and liars ? These weren't victims,but rather gamblers and brainwashed American dreamers who had no intentions of paying their mortgage . It was a world wide Ponzi-scheme in which Corporations and a number of industries were profiting on fake money and leverage while they took away income and benefits from the workers . Paulson made 1/2 billion in 5 years ,so what does that tell you .

Anonymous said...

When I was young we thought automation was going to take all the jobs . Never did I dream that globalism and Ponzi-schemes would be the undoing .

yoho said...

RE: "so what does that tell you about how the gaming of the system continues and the homeowners are just crooks and liars?"

ummm, I'd say this is symptomatic of military economies since military work sets the economic bar for everyone else.

at least, this is what my peacenik engineering friends complain about since civilian work is now sent overseas while military work stays here and is rapidly becoming the primary way to make big bucks quickly.

personally, because of that, I don't look down on people like I used to because the world's a crazy place and so house flippers are only looking for ways to find a little peace and quiet.

Anonymous said...

It's over, but I don't think it's easy to imagine what walking the walk will be like. I had a father who was always self employed with his little business, but we were never more than barely middle class at most, poor sometimes. We managed a lot of things with do-it-from scratch living, being very creative and having a variety of skills, but even that didn't help during some periods. Alcoholism was a big disrupter of the better times in the end.

I am very creative and don't drink or have addiction problems, so that's definitely been a saving factor. I've gotten through many
hard times by sewing my own drapes to cover the windows from $1 a yard fabrics, made my own futons (literally) when we needed mattresses, made acrylic windows to replace the glass ones from my Volvo which had come unglued (it was an experimental model for them), and saved myself $200..when you are a single parent it's do I need to feed the kids and the dog, or do I want to look stylish.That's the kind of choice it will be, only stylish won't even be on the list.
It will be "clothed, covered"..
I know what can be done without credit; raised my kids without it when it was hard to get. It is slow progress, and maintaining roof and table is an achievement. It takes vigilance and dare I say it, grit.
I hope it's in our genes, because it sure hasn't been in our attitude for about a generation now.

Our debt party is over permanently.
The down years have barely begun. By the time we get to acceptance, and then coping skills, it will be a bizarre dream that we will wonder about. Poor people will at least not be shocked. People who've been more sheltered may have breakdowns with some regularity...

People are going to grieve, be angry, and then get to coping. It is going to be the biggest challenge of my lifetime, and believe me, I've had a challenging life.

Keep breathing...that's the ticket.

Grandma PKK

George L. said...

No more,the party is over.I have said it here before Keith,yet it falls on deaf ears,we are slowly but surely becoming a third world country.

I mean,even Slovakia doesn't want to be compared to the U.S. we are less and less regarded as the most powerful nation.

Asia is where the game is at.their priority for the last 30 years has been education and that's how you become powerful,the hard way.but not us,we are the chosen ones,we can take a 4 week course on how to sell houses and become millionaires and be on easy street for the rest of our lives.we still live on denial.

check the links below if you'd like

http://tinyurl.com/5rcnv5

http://tinyurl.com/5wxu22

JaneZ said...

Our debt party is over permanently.
The down years have barely begun... It is going to be the biggest challenge of my lifetime, and believe me, I've had a challenging life.

Keep breathing...that's the ticket.

Grandma PKK

Bless your heart.