View Full Version : Congress should pay attention to consumers...
The word on the street, and by street I mean internet, is that there are 8 million less people with credit cards these days. Now we here that Best Buy took a beating on TV sales this year. It seems consumers are starting to do a little saving during these rough years. Up until my generation most adults did not buy their first piece of brand new furniture until they were in their 30s and 40s. My generation that started creeping down quickly and now people are buying "new" everything while still in college. They get credit cards and spend spend spend.
Our current recession might be the best educator out there. It did its job in the 30s and the late 70s/early 80s and it seems to be working again. Why does it take something so drastic to force people to live within their means?
When is Congress going to ever learn this lesson? With the average American it is easy to hit their wallets and force them to be conservative with their frivolous spending. As long as their are rich taxpayers, Congress will never learn their lesson.
12-14-2010, 10:04 PM
As long as the government can just print more money, there is no reason to reduce spending.
12-14-2010, 10:11 PM
The difference with us regular people is that eventually the bank or credit card company will say "no" once we get bad enough... we are then forced to attempt to live within our means.
The government doesn't have that "problem"
How true that is.
I received my first CC in 1977 ... $300.00 LIMIT!!!!! ... and went to an electronics store called "BEST PRODUCTS" only to find that there was a national chain that didn't accept credit cards.
Bought my first new car in 1978 and the standard terms were tax and title plus 10% down (About $650.00 total.) for 36 months. In one generation the "STANDARD" loan went to nothing down ... roll in the negative equity ... and 66 months or more.
Yeah, it really is a different mindset and it happened really fast this time around. I have already started teaching my kids about savings and they don't even really get commission. We don't call it allowance because they don't get paid if they don't do the work just like a commission. Anyways, if they make $5 they know that one dollar is for tithes, one dollar is for saving and the rest they can spend. They are 4 and 6 right now and hopefully these lessons will stay with them.
I had troubles with credit cards myself and it took about 5 years to pay them off. It was hard work and filing bankruptcy never entered my mind. It is scary how quickly someone can go from being a saver to being a spender and it is times like these that quickly switch people back to being savers. I honestly think the American people NEEDED this to happen because they are reeling out of control. The same is true for government spending but they don't seem to learn their lessons the same way when they can just keep increasing the taxes as they see fit.
12-15-2010, 08:11 AM
<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: eg8r</div><div class="ubbcode-body"> They get credit cards and spend spend spend. </div></div>
Then they file bankruptcy and walk away. They did it first with credit cards then they did it with their home mortgages. They even advertise it on TV. The guy says I was in credit card debt for $40,000. I paid $2,200. Look at me now. I screwed the credit card companies for $37,800 and I am bowling.
12-15-2010, 08:21 AM
<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: sack316</div><div class="ubbcode-body">The government doesn't have that "problem"
They are beginning to. Moodys just put Spain on the downgrade review list. Governments print money and sell bonds against it. Once a governments bond rating goes to junk status, it's game over.
I heard an interesting idea in Vegas recently. The Fed is trying to force world inflation to bring salaries in countries that are competing for US jobs up to US standards. The IT industry is running the same route that the textile industry did. Offshore the jobs until a country gets too expensive then move to another one. First they offshored to India. India is getting more expensive, now it's Mexico. I think SE Asia is next.
That is pure theft. I got into a debate with someone close who did the same thing and they couldn't understand why I called them a thief. He bought all this stuff on credit (still has it) and then file bankruptcy and gets to keep all his stuff. Sounds like theft to me.
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