A national recall out on financing

The financing of things and places going on in this country must go! It must be outlawed in all of its forms!

Those behind the things one would normally not be able to afford without financing are foolin all the ppl they can. The cost of things that would normally have to be financed should be reduced into one-time affordable prices. An addition to the law must be that everything for sell must be for a one-time cost only. Meaning, there should have never been any money exchanging toward more than a one-time payment toward any thing or place in this country.

^^This would force the cost of living how you should to be lowered so that more ppl can get the oppurtunity to live decent as the next person all proper in absolute ownage.

You want to finance? Finance persons, not places or things. Like by providing income for persons working or even not working.

Some of you may think that then you wouldnt have been able to live in a nice house. Not so fast! They (you know whom--the companies that build houses) would be forced to lower the prices of houses so that they wont go dead broke and not be able to make a living their damn selves.

Part of an economic problem lies in having to finance which brings credit and loaning lending into the big picture.

And those making more money off money they lend out instead of making money any other way are inserting all sorts of problems into the economy. They should be looked at as the true crime lords. You heard of "War Crimes"? Well they are responsible for "Economic Crimes" who need to be registered as economy offenders on a list. Yeah, there is more than one crime because there is more than one way to skin a world.

Why pretend you own something just because you are financing it by way of being pimped out of more money over a course of time? You only think you're smart because you're able to while being apart of the problem as though you wont care.

Anyhow, should financing things and places be outlawed? What's your take on what in all would result if it were outlawed? How would the economy be then once any person can honestly afford something in life?

Who got these people into debt in the first place? Were they dragged kicking and screaming to the bank and forced to take out a mortgage? Were they dragooned into buying that gasoholic SUV on easy payment? Did someone bend them over a hypermarket checkout counter with a gun to their heads and compel them to max out their credit cards?

Only a fool borrows to finance his consumption spending. However poor you are -- even if you literally don't know where your next meal is coming from -- borrowing money to spend on things you just use up is a very, very bad idea. If your problem is lack of money, getting into debt will not make things better: it will only make things worse.

As a banker specializing in credit mobilization once told me, 'credit is only credit until you use it. After that it becomes debt.' It's a perfectly obvious statement, but some people are so dazzled by the prospect of having the goodies they've always wanted, they just don't see it.

You want to outlaw financing just to protect these idiots from themselves. What, then, of the legions of honest, enterprising folk who borrow money in order to finance their businesses -- people who borrow money to make more of it? Every business, even a very highly capitalized one, sometimes finds it necessary or convenient to borrow money in order to make more money. Then everybody is happy -- the borrower ends up richer, the lender gets his money back with interest, the economy prospers and hard work is rewarded. You say all this should be tossed away, and the world financial system destroyed into the bargain, just to protect greedy, feckless, unproductive layabouts from themselves?

I don't think so.

Originally posted by Astyanax
Then everybody is happy -- the borrower ends up richer, the lender gets his money back with interest, the economy prospers and hard work is rewarded. You say all this should be tossed away, and the world financial system destroyed into the bargain, just to protect greedy, feckless, unproductive layabouts from themselves?

I don't think so.

Well, in case no one has noticed by now the lenders are not getting their money back with interest, the economy is not prospering and hard work is not getting rewarded, it's getting laid off.

Not saying all financing should stop, but the unregulated predatory lending that went on the last few years has hurt a lot more people than "greedy, feckless, unproductive layabouts". We are all paying for it now.

It may be moot at this point because credit is drying up fast. I personally blame a lot of this on the lenders and our educational system. Basic math skills by the end of high school should include how to budget, how to balance a checkbook, what the long term growth of savings boils down to and what the long term cost of a loan boils down to. No one has a clue anymore.

Typical everyday answers to people calling about rentals when asked the following qualifying question include (about 50% of incoming calls"):

What is your weekly gross household income?

"I don't know I get paid every other week".
"I only know what I take home."
"What do you mean I can't afford the rental? I take home $200 more than that a month." (Maam/sir - that will pay your utilites on the house, what are you going to do about food?) "ummmmmm"

People have been so dumbed down it's frightening! I'm sorry but too many people were mislead to believe they could afford a home without understanding that they couldn't really, except for the teaser rate they were starting out with, and lenders made the loans anyway. Sure some of these loans were to greedy people, but way too many of them were to your average Joe who just wasn't taught anything worthwhile in school and do not have the skills needed to understand what was going to happen to them two years down the road.

Like I said though, it's all going to be moot. What should be the current generation of first time home buyers are never going to be able to afford one because the loans that are going to have to be written now that we are in crisis mode, will require downpayments they will never be able to come up with, (partially because they have been taught, bought and encouraged into debt the minute they graduate from high school) higher fees, higher rates, etc. and from what I am seeing, they are racking up debt just to eat and get to work now in the current economy.

I recently had a discussion with a high school student who was taking a mandatory class (for her particular curriculum) called "Critical Thinking". The current assignment had something to do with a what if scenario about a balloon being let go with some stupid caveats attached. This is not critical thinking, this is imagination exercises. I really believe the US educational system has just gone down the toilet. Was she ever taught to balance a checkbook, does she understand saving money, borrowing money and the consequences? Yes, but not at school. She is one of the lucky few who have two generations of family all involved in her upbringing. I hate to say it but I really think a good part of our Global Meltdown is a product of the dumbing down of our children, who haven't got a clue how they are being taken advantage of financially at this point (every dime they make is spoken for within a few years of high school graduation, starting with - heaven forbid - they had to finance a higher education) and now it's all falling apart.