Not Again... Americans who can't afford their mortgage up 145%

[jonsnow399]

I doubt the 1%ers have much debt on their assets.

It's the bottom 5 % who are in debt up to their eyeballs if antyhing.

You never heard of leverage? Its how the rich get richer, with OPM.

 

[rkymtnman]

You never heard of leverage? Its how the rich get richer, with OPM.

explain. i've worked for a few 1%ers. they owned everything they have.

 

[jonsnow399]

explain. i've worked for a few 1%ers. they owned everything they have.

They explained their finances too you? Bet they didn't make their money without borrowing. and if they are debt free they are in the 1/100 percent group.

 

[rkymtnman]

Bet they didn't make their money without borrowing.

so guesses are OK to use as facts?

 

[Flaming Pie]

There has to be some balance though. It can't be all pinching pennies and eating ramen noodles. Who the fuck would want to live like a hermit and have no fun while they're young, and then be too old and sore to actually enjoy the money that they spent their best years saving?

We pinch pennies by eating beef chicken and the occasional steak at home.

We pinch pennies by not going out to every movie when it releases. We usually do about 2 a year.

We enjoy our life by spending time with friends and family over a meal or project.

We enjoy our life through relationships not things.

We never eat ramen.

 

[rkymtnman]

They explained their finances too you? Bet they didn't make their money without borrowing. and if they are debt free they are in the 1/100 percent group.

you think 1%ers have maxed out credit cards, take out car loans for 7 years, 40 year mortgages?

 

[jonsnow399]

so guesses are OK to use as facts?

Did the guys you are talking about show you their books? if not you are only guessing about their situation. Businesses borrow money every day, a business that doesn't is rare.

 

[jonsnow399]

you think 1%ers have maxed out credit cards, take out car loans for 7 years, 40 year mortgages?

people max their cards all the time even 1 percenters, mortgages are tax deductible, but i'm talking about business loans.

 

[Flaming Pie]

I don't understand what calling somebody a fool means in terms of what's best for our society when poor decisions or misfortune wipes out a person's retirement savings. Should their children go without? Who do you think the homeless are?

You are making a very good argument for socialism.

Poor decisions lead to poor outcomes.

A poor outcome does not determine your entire life if you make better decisions.

It takes a while to dig yourself out of a hole. Can take a couple years before you break even depending on how poor your decisions were but it is doable.

Just takes willpower and readjustment of priorities.

 

[Flaming Pie]

Are the people profiled here also fools?
http://www.npr.org/sections/health-shots/2016/03/08/468892489/medical-bills-still-take-a-big-toll-even-with-insurance
For Barbara Radley, there is "before" and "after." Before was when she could work — moving furniture, and driving a long-haul truck.
"It was nothing for me to throw a couch on my back and carry it up a flight of stairs," says the 58-year-old from Oshkosh, Wis.
Then there's after. After she herniated five disks in her back. And after, she says, her blood pressure medicine destroyed her pancreas.
Now Radley is disabled, suffering from diabetes, liver failure and scleroderma.

And she is bankrupt.

"Well, the medical bills were just piling up," Radley tells Shots. "We couldn't handle it. We just couldn't keep up."

Nothing is guaranteed in life. The unexpected happens. It is your job to put aside in times of plenty for the bad times that are sure to come.

Notice how it says even with insurance she was struggling. Thats because obamacare ushered in rediculous premiums for middle class with even higher deductibles.

If we could purchase across state lines and if we had access to catastrophic plans, she may have been fine financially.
Did she herniate her disc carrying couches on her back? Foolish.

 

[whitebb2727]

https://assets.bwbx.io/images/users/iqjWHBFdfxIU/i35Qm5k9PGrU/v4/800x-1.png

US Household debt is at the same level as in 2008. A recession would trigger massive numbers of defaults. Banks are already under strain due to artificially low interest rates. A debt crisis among the lower classes can cause a recession. A bad one. Maybe not the big one but big bank bailouts and increased US government debt. Along with economic hardship.

Can you explain why the concentration of assets means the 1% will crash the economy because of their debt?

Fuck the banks. Car manufacturers also. Should have let them all fail.

 

[ttystikk]

https://assets.bwbx.io/images/users/iqjWHBFdfxIU/i35Qm5k9PGrU/v4/800x-1.png

US Household debt is at the same level as in 2008. A recession would trigger massive numbers of defaults. Banks are already under strain due to artificially low interest rates. A debt crisis among the lower classes can cause a recession. A bad one. Maybe not the big one but big bank bailouts and increased US government debt. Along with economic hardship.

Can you explain why the concentration of assets means the 1% will crash the economy because of their debt?

Because it's the default on their assets that will have a bigger impact on the economy than another housing crisis.

 

[ttystikk]

I doubt the 1%ers have much debt on their assets.

It's the bottom 5 % who are in debt up to their eyeballs if antyhing.

Dude, the bottom 5% are homeless. Whatever debts they might have are to payday loan sharks. Total value of their assets and debt is at best a rounding error compared to the rest of the economy.

I don't think people fully understand just what accelerating wealth inequality has done to our economy and how it works.

 

[ttystikk]

you think 1%ers have maxed out credit cards, take out car loans for 7 years, 40 year mortgages?

No, but they certainly do issue corporate bonds, issue stock and take out loans against real estate holdings. In normal economic times, it's reasonable, prudent and profitable to do all of those things.

When the bottom falls out, your customers stop paying, your lessees go belly up and THEN things get ugly.

 

[jonsnow399]

No, but they certainly do issue corporate bonds, issue stock and take out loans against real estate holdings. In normal economic times, it's reasonable, prudent and profitable to do all of those things.

When the bottom falls out, your customers stop paying, your lessees go belly up and THEN things get ugly.

one percenter's start out at $400,000 a year, if they live in NYC or San Fran you think they don't take out house mortgages and sometimes max out their credit cards. They probably have AAA credit and it would be stupid not to take out a loan on a car if you get a low interest loan.

 

[ttystikk]

Fuck the banks. Car manufacturers also. Should have let them all fail.

The instinct to save the Institutions was sound.

The mistake was leaving the people who fucked us over in charge, instead of perp walking them out of their wood panels boardrooms and putting them on trial for their massive malfeasance.

Car industry is a great example; the execs at GM and Diamler Chrysler over extended themselves badly, bankrupted their corporations- then flew to Washington in their private jets to beg for cheap loan guarantees. Those motherfuckers should have been kicked out the door with no golden parachutes!

Ford, by stark contrast, had seen the economic headwinds coming and had sold off relatively unprofitable divisions and recent acquisitions like Volvo, Jaguar and Aston Martin. Thus they were well printed for the form and ready to take advantage of their prudent moves to increase market share vs the stupidity of the others.

They we plenty pissed when the give bailed out their irresponsible competition on the cheap, leaving them with nothing to show for their efforts! They didn't even need the loans they were offered.

We have begun to habitually reward bad business behavior and let the (rich) idiots who make those decisions off the hook. The optics are as bad as they are clear; if you're rich, the country will save you from your own stupidity and not punish you for your crimes- but if you're middle class or lower, we'll take your house and throw you in prison for stealing a loaf of bread to keep from starving.

What amazes me is why We the People haven't emptied into the streets and demanded that Justice be done. Maybe as a country we're too stupid to see what's happened and we deserve to fail.

Trump is merely presiding over a whole new round of the rich stealing from everyone else and the American citizens are once again sitting on their hands.

 

[ttystikk]

one percenter's start out at $400,000 a year, if they live in NYC or San Fran you think they don't take out house mortgages and sometimes max out their credit cards. They probably have AAA credit and it would be stupid not to take out a loan on a car if you get a low interest loan.

You've absolutely missed the point, friend. That's not where the money is.

You pointed out where the top 1% STARTS. Most of the money and assets are held much further up the scale, by people who can buy a Rolls or Enzo out of petty cash.

 

[jonsnow399]

You've absolutely missed the point, friend. That's not where the money is.

Nope, I never said thats where the money is, the question was about 1 percenters , that starts at $400,000 on up

 

[rkymtnman]

Did the guys you are talking about show you their books? if not you are only guessing about their situation. Businesses borrow money every day, a business that doesn't is rare.

a 1%er is a person, not a business. the people i know that i'm referring to are the ones that got a 911 for their first car, 5 million when they turned 21 kinda people. paid cash for everything, no need to borrow kinda people.

 

[TacoMac]

The secret to making money is simple: never use your own money. Use other peoples money. That way, worst case scenario, you file for bankruptcy protection and walk away with your money in tact and let the taxpayers, insurance companies and low level investors pick up the pieces.

Donald Trump has done it 4 times. It works.