It’s almost midnight; do you know where you mortgage is? How about the paperwork regarding the car payment you missed last month when little Joe got sick and you had to rob Peter to pay Paul? Well it should come as no surprise to you that in a global economy, debt has gone global as well. The fact that the First Communist Bank of China now owns your mortgage or that the payment you missed is now laying on the desk of a man in India, who will be politely calling you later today, is a fact we all have to come to grips with in today’s twenty four hour world of finance.
So with that sobering reality accepted, what say you to the idea that we quit calling our present financial situation a mortgage crisis and start calling it what it really is; a borrowing crisis. Now you might think America does not have a borrowing crisis. And for some in this country you would be right. That being government and people who deal in Jumbo this and that’s. But for you and I and anyone else that puts money in a bank one paycheck at a time, that is exactly what it is.
Now many have been hinting that a recession is near, happening or almost here. Semantics really, because if rice cost forty dollars a bag this week and two weeks ago it cost ten and you didn’t get a pay raise; you just doubled what you have to pay for rice and were left with that much less to spend, period. You say recession I say borrowing crisis!
How bad is it? It’s really bad. If American home owners could borrow more money 405,000 of them would not have lost their homes last year. The banks find it more profitable to lend to a new buyer or to just eat the interest until one comes along? Obviously that bird in the hand thing is no longer the rule of the day. It appears that a steady diet of closing cost revenue is harder to give up than anyone ever imagined.
Homeowners basically have been essentially cut off at the bank. Luckily for our President he can borrow a billion dollars with the signing of IOU’s to China and other oil rich countries so we can continue our war, not to mention get those stimulus checks, fund social security and do just about everything else our government does.
Bottom line; there are no free lunches. You are paying the cost of our country financing a war on credit, by giving up your credit line. You probably never thought loosing your house could be spun into an act of patriotism, but don’t be surprised when you hear it regarded that way for the fist time. If it is not, you need to write your Congressman, tell you neighborhood and spread the word to whoever will listen that hey! I want my credit back!
Over an over we hear that this war will never end. Actually to end this war all we have to do is ask China to quit lending us money to pay for it. Now there is a credit card privilege that quite a few Americans would be glad to see us loose!