It is hard to offer sympathy for those major corporations affected by the credit crisis. But when you do some serious investigation into what caused the whole mess and realize as things stand right now in just a matter of days many have seen life savings go to, “zip” you can’t help but wonder what is going on. It appears what we thought was a mortgage crisis is something far greater; and that is an understatement because mortgages are just the tip of a very large iceberg crashing into our entire financial system. Had we any leadership or any one in government that wasn’t either profiting or with sense enough to be a leader, we might have avoided this credit melt down.
What we have been led to believe was some overzealous lending it seems was not just related to mortgages but to about every product or service money could buy. Fueled by the ten billion dollar a month war that we have outsourced to the hilt, it would appear that a lot of people have been sucked into taking a part of the action. Naive as we were to think that China was footing the whole bill we see countries all over the world taking major hits in financial markets because they have lent more than they can bring back in to cover operation costs! I’m surprised the current administration isn’t yelling out that economic terrorism has struck!
Sure the twenty percent down on a house rule seems to have been forgotten a long time ago. Who would have thunk, putting your down payment for a house on a credit card could bring the entire money marketed world to its needs! Add to all of this our almost lassiez faire attitude of putting every purchase on the card and well, you begin to see a real problem. I actually saw a lady charge gum the other day! Gum and therein lines the heart of the problem. We think nothing of charging; anything we buy. Given the fact that many don’t really see any correlation in paying the bill when it comes do, is what is at the heart of our problem.
Latest figures say the average American owes $17,000 dollars in credit card debt. Credit card debt is the worst of all debts possible. You’ve seen the movies where the loan sharks double the money the mark owes. He pays off what he thought, but the interest is compounded beyond his reach to ever get the score even again. Credit card debt is worse. If all you can pay are the monthly payments, you’re not going to pay that debt off anytime soon. The fact that the debt is out there floating around and that others are buying and selling it and all dependent on you paying it back is the true underlying reason we are in this crisis.
In the movies when you don’t pay the man his money he hurts you; it would appear getting hurt is the least of our options!