I don’t know how many of you may remember a little event that happened in 2007. It was the economic downturn that led to the Great Recession (I think this is the third Great Recession we have had in my lifetime). Apparently a combination of some poor policies set in place by Presidents Clinton and Bush allowed for some companies to conduct unscrupulous business. Americans with less than ideal credit and a less than ideal income stream were sought out by these businesses. They convinced these people that they should overextend themselves and accept credit cards they didn’t need and mortgages they could not afford to repay.
The people, knowing that they had not the ability or discipline to repay these loans and credit cards gladly accepted them anyway. They purchased homes they could not afford and toys they did not need. Some, those less inclined to try to keep up with the Jones’, were smart enough not to use all those credit cards which, ironically, only led to their downfall in the end. I will explain that later.
While all this was going on, big banks and other money firms were laundering their ill-gotten gains by selling off their “toxic assets” to other firms, who, in turn, sold them yet again. These toxic assets kept being sold over and over again with firms purchasing some of them three or four times. Eventually, this came back to haunt them and the house of cards that they had built their firms on collapsed bringing down the entire world’s economy with them.
The reason they collapsed is simple: the people whom these predatory companies convinced to take on these economic responsibilities eventually could no longer keep up with the payments on the debts they had no business accepting in the first place. This began the problem. Homes were being foreclosed on in record numbers. Bankruptcies were at an all-time high. People were being forced to begin living within their means which meant credit cards and other loans were not being paid so that families could afford to keep food on the table.
The effect this had on America’s economy was almost immediate. The stock market crashed. Companies whose stock was devaluing were forced to fire workers in order to keep afloat and ensure their stock holders made a profit. As these people were laid off, unemployment claims skyrocketed. Those who had credit cards still, you know, the ones who didn’t abuse their credit, were now forced to live off of those credit cards just to pay the bills. Eventually, their accounts maxed out and, since layoffs and firings were still increasing and hiring was all but non-existent, they could not keep up the payments on those accounts. It was a brief reprieve at best.
America was in a very bad way. The people demanded their pound of flesh. They wanted someone to blame for the economic crisis. Someone other than themselves, that is. Congressional hearings were conducted. New laws making it more difficult to file bankruptcy were passed in an effort to protect the credit card companies. And, in the end, the companies who created the problems in the first place were bailed out by the government at the taxpayer’s expense infuriating the people even more.
However, soon, there was a beacon of Hope and Change on the scene. A new President was elected based on promises he made to make things better. The people were elated that, finally, someone was going to make things right; make things better. The country would heal and we would be back on our collective feet in no time at all.
But it was never to materialize. Things actually got worse. Well, for some it got better. Those who started the whole mess to begin with actually became wealthier and were rewarded for their misbehavior. Meanwhile, the middle class and the poor continued to suffer. And suffer. And suffer.
Slowly, the economy limped along. New laws were passed which made things worse for the common man on Main Street. The rapscallions on Wall Street, made more and more money, though.
So, with the destruction and misery caused by this debacle, Americans learned their lesson: credit is not necessarily a good thing. If you can’t afford to purchase a new car, then don’t. If you buy a house, make sure it is not more house than you need AND make sure you can afford to pay the mortgage. Most importantly, live within your means.
At least, I thought Americans had learned that lesson. Apparently I was wrong. The same rascals who began this problem all those years ago are back at it again. The thing is, they aren’t even trying to make a new scam. They are running the SAME EXACT scam they did before. Offering loans and credit to people with less than ideal credit and less than ideal income streams. “Go to Credi****.com where auto dealers say ‘Yes’ when others have said ‘No!’” claimed an advertisement I heard on the radio today. The offers for credit cards one cannot afford are starting to be mailed out again to those same people who couldn’t make the payments before.
The worst part is that the PEOPLE are taking out these loans and accepting these credit cards knowing full well that they can’t afford them! They are voluntarily enslaving themselves, AGAIN! We have become a nation ruled by corporate greed and corruption. Advertising agencies are hired to convince us that we absolutely must have the latest techno-gadget or other item we really don’t need. It seems that everyone and their brother are offering credit cards. You can get a card from a bank, an airline, a store, a website or a credit card company. I have even seen a credit card offered by a satellite television provider and a telecommunications company.
The same people who couldn’t afford the credit the first time around are taking out these loans and accepting these credit cards. The same companies who offered the credit and loans the first time around are offering them again. And America is sliding further and further down the abyss.
I was one of those who succumbed to the temptation of credit and easy living without the ability to pay for it. It was a hard lesson to learn. I almost lost my house and my credit is totally ruined and will be for years to come. My family struggles to make ends meet each month. But, you know what? Aside from the mortgage we are virtually debt free. We have learned to do without a lot of the things we want but don’t need. Yes, I have a flat screen television. But the difference is that I learned I had to save up for it if I wanted it. I made my monthly payments on it BEFORE I bought it. Instant gratification only leads to problems. Many Americans have learned that but most have not.
I fear that since we did not learn our lesson the first time around, we are doomed to repeat it again. It will not go as well for our country the next time our economy collapses. It will doom our country.
The people, knowing that they had not the ability or discipline to repay these loans and credit cards gladly accepted them anyway. They purchased homes they could not afford and toys they did not need. Some, those less inclined to try to keep up with the Jones’, were smart enough not to use all those credit cards which, ironically, only led to their downfall in the end. I will explain that later.
While all this was going on, big banks and other money firms were laundering their ill-gotten gains by selling off their “toxic assets” to other firms, who, in turn, sold them yet again. These toxic assets kept being sold over and over again with firms purchasing some of them three or four times. Eventually, this came back to haunt them and the house of cards that they had built their firms on collapsed bringing down the entire world’s economy with them.
The reason they collapsed is simple: the people whom these predatory companies convinced to take on these economic responsibilities eventually could no longer keep up with the payments on the debts they had no business accepting in the first place. This began the problem. Homes were being foreclosed on in record numbers. Bankruptcies were at an all-time high. People were being forced to begin living within their means which meant credit cards and other loans were not being paid so that families could afford to keep food on the table.
The effect this had on America’s economy was almost immediate. The stock market crashed. Companies whose stock was devaluing were forced to fire workers in order to keep afloat and ensure their stock holders made a profit. As these people were laid off, unemployment claims skyrocketed. Those who had credit cards still, you know, the ones who didn’t abuse their credit, were now forced to live off of those credit cards just to pay the bills. Eventually, their accounts maxed out and, since layoffs and firings were still increasing and hiring was all but non-existent, they could not keep up the payments on those accounts. It was a brief reprieve at best.
America was in a very bad way. The people demanded their pound of flesh. They wanted someone to blame for the economic crisis. Someone other than themselves, that is. Congressional hearings were conducted. New laws making it more difficult to file bankruptcy were passed in an effort to protect the credit card companies. And, in the end, the companies who created the problems in the first place were bailed out by the government at the taxpayer’s expense infuriating the people even more.
However, soon, there was a beacon of Hope and Change on the scene. A new President was elected based on promises he made to make things better. The people were elated that, finally, someone was going to make things right; make things better. The country would heal and we would be back on our collective feet in no time at all.
But it was never to materialize. Things actually got worse. Well, for some it got better. Those who started the whole mess to begin with actually became wealthier and were rewarded for their misbehavior. Meanwhile, the middle class and the poor continued to suffer. And suffer. And suffer.
Slowly, the economy limped along. New laws were passed which made things worse for the common man on Main Street. The rapscallions on Wall Street, made more and more money, though.
So, with the destruction and misery caused by this debacle, Americans learned their lesson: credit is not necessarily a good thing. If you can’t afford to purchase a new car, then don’t. If you buy a house, make sure it is not more house than you need AND make sure you can afford to pay the mortgage. Most importantly, live within your means.
At least, I thought Americans had learned that lesson. Apparently I was wrong. The same rascals who began this problem all those years ago are back at it again. The thing is, they aren’t even trying to make a new scam. They are running the SAME EXACT scam they did before. Offering loans and credit to people with less than ideal credit and less than ideal income streams. “Go to Credi****.com where auto dealers say ‘Yes’ when others have said ‘No!’” claimed an advertisement I heard on the radio today. The offers for credit cards one cannot afford are starting to be mailed out again to those same people who couldn’t make the payments before.
The worst part is that the PEOPLE are taking out these loans and accepting these credit cards knowing full well that they can’t afford them! They are voluntarily enslaving themselves, AGAIN! We have become a nation ruled by corporate greed and corruption. Advertising agencies are hired to convince us that we absolutely must have the latest techno-gadget or other item we really don’t need. It seems that everyone and their brother are offering credit cards. You can get a card from a bank, an airline, a store, a website or a credit card company. I have even seen a credit card offered by a satellite television provider and a telecommunications company.
The same people who couldn’t afford the credit the first time around are taking out these loans and accepting these credit cards. The same companies who offered the credit and loans the first time around are offering them again. And America is sliding further and further down the abyss.
I was one of those who succumbed to the temptation of credit and easy living without the ability to pay for it. It was a hard lesson to learn. I almost lost my house and my credit is totally ruined and will be for years to come. My family struggles to make ends meet each month. But, you know what? Aside from the mortgage we are virtually debt free. We have learned to do without a lot of the things we want but don’t need. Yes, I have a flat screen television. But the difference is that I learned I had to save up for it if I wanted it. I made my monthly payments on it BEFORE I bought it. Instant gratification only leads to problems. Many Americans have learned that but most have not.
I fear that since we did not learn our lesson the first time around, we are doomed to repeat it again. It will not go as well for our country the next time our economy collapses. It will doom our country.
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