posted on Sep, 18 2008 @ 06:55 AM
Many years ago,very few people had any money, and so the majority was poor. Then the opportunity for credit to the masses became available,which made
the average joe a chance to get on in life, because his dreams were possible. His part was to work hard and long, and that, s how the peoples worth
The problem became serious when most extended credit way above their means of repaying, (unaware of what dire situation was ahead) similar to the
wall st. crash.
what happens if you owe on a car? the car gets sold ,you lose your car, plus you are in debt,finance company sells on car ,but don,t lose much cash
because most of the debt is finance ,interest.
Houses,same situation but far worse who can buy your house that the bank reclaims,not many people who have the cash will use their own cash,the banks
make money by lending depositors cash to others,wrong decisions on the banks part could make the situation worse.
Supposing you lose your house ,the bank resells, you rent it, then you lose your job (this follows recession)your landlord cannot pay the bank.
The government can print money and not tell the (full) truth, at the end of the day you, your family come first, when ever there are problems always
go back to basics, food and water is far more valuable than property,cars,boats. mike