Life after credit.

Discussion in 'Et Cetera, Et Cetera' started by Drifterwood, Sep 17, 2008.

  1. Drifterwood

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    I wonder if the reality of the last few days is sinking in?

    As far as I can see, investment banks and those who snuggled up with them have been booted out of town. The economic model of froth has been blown away, fantasy capitalism exposed, and a new reality dawning with the mother of all hangovers.

    Those without real capital will not get credit, if there is suspicion that you can not repay or cover your debt, they will be knockng on your door, and closing theirs for some time to come. Japan's economy stagnated for a decade.

    I guess the cost of our credit binge will hurt almost everyone and 20% very seriously. No soft landings here.
     
  2. midlifebear

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    'Tis a scary world out there, Mr. Drifterwood. Scary, indeed. I'm curious as to what Suzie Orman (sp?) has to say on the subject. She's the one Lesbian you can count on for the straight dope.

    Scary, I say. Thank you for noticing. I don't think most 'Mericuhns (unless they lost their house or job in the last 18 months) have a clue.

    Shall we hold hands and sing "Bye and bye?"
     
  3. Yorkie

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    I've never gone into debt,I pay my credit cards in full every month.My rule has always been if there isn't enough cash in the bank don't spend.
    I've seen cases of credit card companies closing the accounts of people like me because there isn't enough profit to be made for them.
     
  4. Deno

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    I have 34 dollars on a credit card plus my mortgage. I will pay off that credit card this month, I have a fixed rate mortgage from a bank I wonder how this will effect me.
     
  5. Drifterwood

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    Well, I have been waiting for someone to start a thread about the effects on us all (the UK isn't any better placed), but the McCain/Obama minutiae seem still to be considered relevant.

    I really like to roll my eyes when armageddon is being prophecied, but the failure of the recent western banking and financial model seems a pretty major event to me.

    Do you have a song in mind?
     
  6. Drifterwood

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    That depends on who your mortgage is with and what their liquidity leverage is. If they have over lent against their intrinsic value and/or their book is considered high risk, you may be fucked if your loan is considered high risk or even if it is in that portion of which they have over lent. Some banks may have to liquidate perfectly good borrowers, just to save their own fat asses.
     
  7. midlifebear

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    A song. . . hmmmm. . . a song . . . Amazing Grace(period)? Shall the Youth of Zion('s Bank) Falter? We Thank Thee O God for Our Profit? Sorry, but having grown up in Ewetaw the only hymns with which I'm familiar all have something to do with the Church of Cheese and Rice and Rattle the Snakes. Although, I think they appropriated the majority of theirs from the Anglican Church. I'm certain there are several from the Salvation Army Hymnal that would fit this economic crisis nicely.

    Read yesterday that American Investment Group (AIG) is the insurance guarontor (sp? sorry I'm thinking in Spanish) -- anyway AIG is the insurer on all of Lehman Bros. overseas long-term lease agreements. It's sort of like a terribly ingrown toenail, ain't it?
     
  8. Yorkie

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  9. Drifterwood

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    Indeed, they are also underwriting the dodgy debt with American's pension funds etc which is why they got nationalised.

    There's an old rule in banking (these guys tore those up though), you don't throw good money after bad.
     
  10. Mr. Snakey

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    This will have a profound effect on the entire world.
     
  11. Principessa

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    It's my fault, I admit it. I caused the stock market to crash by my selfish desire to party south of the border. :redface: :frown1: I closed out my AIG account in April when I went to Tijuana. I had no idea the
    'Butterfly Effect' would be a major stock market crash and the loss of jobs for so many innocent people. :frown1:
     
  12. Mr. Snakey

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    " Send lawyers guns and money the shit has hit the fan "' - Warren Zevon
     
  13. Rikter8

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    Im up waist deep.

    I've noticed the energy companies constantly send bills...even though theyre not due.

    I've got 2 cards, which I need to consolidate tomorrow, if at all possible at my local credit union. With the housing slump, visions of selling out and paying off are non-existent.

    Not only is it bad now, It's going to get MUCH worse.
    I'm also heading tomorrow to get firewood for the winter, for in the event of energy going off the map...which it will do, I have a backup to heat my house.
     
  14. Deno

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  15. boerkie

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    interesting thread. i have paid off all credit cards after i lost the shop in florida. i even closed the accounts, big mistake i was told, as it negatively affected my credit.
    but for me, the truth that if you have not got the cash, you cant afford it, has become a lifestyle.
    it sucked in the beginning, it was like cold turkey not being able to just buy and charge.
    amazing how folks look at you when you pay real dollars for something that is normally paid for in plastic!!
    i wonder if thgis is not a wake up call for more people to drop their dependency on plastic, and to lower their spending to within their means.
     
  16. curious n str8

    curious n str8 New Member

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    YouTube - Eve Of Destruction Video :beerchug: :BoomSmilie_anim::rocketwhore:
     
  17. Deno

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    its more like the pot sucks and no longer induces the extreme munches the economy so depended on. I quit smoking totally :frown1: and cut my grocery bill in half plus I don't use up all kinds of gas finding the good shit.
     
  18. Domisoldo

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    Funny you'd mention her. I saw her appearance on TV last night.

    I had dismissed her as bland, generic and simplistic, but she was quite feisty and articulate last night.


    She had the spunk to swim upstream and even thank the government for using her tax money to avert a catastrophe, even calling the bail-out a money-making investment for us in the long-term.

    She was far more savvy on complex financial instruments than her populist show (not the PBS one) would have me believe.
     
  19. sdbg

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    My wake up call came in July '07 when I read a book entitled THE GREAT BUST AHEAD. I was always a live for the moment guy and didn't think too much about the future beyond my retirement plan. After I read this short book (above), I began a program to pay off any credit account that I have and then begin to invest wisely for the future. I've paid off the higher interest accounts already. Now I'm working on the cards with modest interest. I would love to buy a new carbon fiber bicycle that would cost me about 4 grand, but I won't do it until I pay off a few accounts first.
     
  20. kalipygian

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    I had a fifteen year mortgage, which is paid off. My other real estate, here, Florida, and on Grenada are also paid off.

    I don't have credit cards, I use just Visa/debit cards, which have automatic transfer from savings if I go above what is in checking.
     
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