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fish'nmagician

Spending Vs Earnings.....

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I read a story yesterday, about the spending rates of Americans vs. their savings, and that the number of families who are spending more than they earn is at the highest percentage in 74 years.

 

This is the type of fact that has me nervous about our economy.

While bush is trumpeting how great it is,

it seems to be fueled on debt spending by both the Government and it's people......

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You are right. They sholdn't do that if they know whats good for them.

Bush did do one thing to help (damn sure isn't square with his spending) and tighten up bankruptcy laws so people can get some of that money back.

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it worries me also. I do the right things, we spend less than we make we save money for things. I worry that in the end it wont matter as all the gotta have it now spend spend spend types will wreck the economy and all our hard work. that might sound selfish but its no more selfish than the I gotta haveit now types who run up mountains of debt that in all honesty the have no hope of ever getting out from under.

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it worries me also. I do the right things, we spend less than we make we save money for things. I worry that in the end it wont matter as all the gotta have it now spend spend spend types will wreck the economy and all our hard work. that might sound selfish but its no more selfish than the I gotta haveit now types who run up mountains of debt that in all honesty the have no hope of ever getting out from under.

 

 

John this mirrors my own feelings as well. I am concerned that the things I do personally won't matter much if the drain is pulled.

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I actually agree with that. I think between the cost of a home and a college education (which is going way up in price and way down in value) - the cost of living or becoming a middle class american is over the top.

 

Factor in the fact that there are many more bills for everday life that were once free or unnecessary (examples - checking accounts and all the fees associated with them), television, radio (Now satelite) and with a monthly fee, Internet access and a PC, Cell phones, numerous credit card fees...

 

Granted those are luxuries as are a college education. But just try and be a productive citizen, without a cell phone, PC, ATM card, Visa Card and a bachelors degree.

 

My boss made a good example to me the other day. When he went to college, the cost of his total education at Pace university was

16K and his first starting salary was 30K (Roughly doubled)

His son is going there next year and it is costing him about 40K per year (total cost of 160K).

By the same rule shouldn't his first job pay 320K.

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The savings rate is a neg. 1%. Does that include housing purchases? If so, would it make sense that it might be people refinancing from adj. mortgages to fixed mortgages with decreasing or flat housing values? When they took out the adj. rate mortg., the value were quickly incr. so the rate somehow wasn't neg.??/

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cash is king smile.gif

 

but credit cards have thier place. I use my go miles card like its going outta style for work and those points mean I dont have to pay for flights any time I go away. I also carry a 0 balance so when I want to do something I can and when I do I have the cash on hand to pay the bill when it comes in.........

 

I feel bad for those in credit hell....but generally they put themselves there, you make your deicsions in life then you have to live with them.

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Bush did do one thing to help (damn sure isn't square with his spending) and tighten up bankruptcy laws so people can get some of that money back.

 

 

I'll give you partial credit on that one.....

it's not so much "people" that will get some money back, but the Credit Industry. and there was ZERO to lessen the predatory nature these companies employ. Offering ANYONE a loan with loan shark rates can be deemed unethical, certainly can be deemed bad business, unless you have a dutiful Government who will work to get your money for you.

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unless you have a dutiful Government who will work to get your money for you.

There is no arguement that these are bad bad people. But if someone signs a deal and borrows a dollar, then they are on for a deal and they owe.

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There is no arguement that these are bad bad people. But if someone signs a deal and borrows a dollar, then they are on for a deal and they owe.

 

 

However, if you lend money to someone that has a VERY high likelyhood of not being able to pay you back, you're going to get stiffed from time to time. CC Companies should be held at least partially responsible for their lending practices and bad debt associated with risky lending practices.

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CC Companies should be held at least partially responsible for their lending practices and bad debt associated with risky lending practices.

I have always had to keep my business dealings simple, as soon as I can't understand something, I steer clear.

Please help me here.

If I borrow a dollar from a man and I make a deal to pay him back, then I made a deal.

So I don't pay. Why is the guy that offered the deal responsible?

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