sk47
Well-Known Member
- Joined
- Nov 12, 2020
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- North Eastern TN
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- Jeff
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Hello; I have known a few folks who played out the debt/credit scenario to it's logical conclusion. It was not a good outcome for the individuals. You can run up credit card and other debt while paying the minimum payments but the whole thing eventually comes to an end. At some point they got to not being able to make the minimum payments.Aside from the bike path story, I would advise the OP that this present economic situation here in the states will likely get much worse in the months ahead.
The fall of petro dollar, loss of the world reserve currency (possible), high inflation, political unrest, supply shortages, as well as bubbles - both real estate and the market. I'm telling ya, things are not rosy in the USA. Remember 2007 Lehman Bros? Anyone see the movie the Inside Job? The government will never tell you when things are about to go south.
I know people think things will just correct themselves post covid, and we'll get back to "normal" any time now, but they've always lived in a debt based world where credit was easy and everyone lived outside their means. Just see what happens as that all changes.
I hope I'm wrong, but I've put off all nonessential purchases, unplugged the TV years ago, bought physical metals, limited my exposure on wall street and maintain only social media that gives me joy(hey, I'm here right?).
I think as rates rise, consumer demand for both homes and cars will fall off ... how much and how long it will take is anyone's guess.
The next 2 years should be very telling.
I also got out of debt some years ago. Not a simple or easy thing to do.
Predicting the timing and nature of how things will play out is not something I have confidence in doing. Back before the housing crash around 2008 it was the "liar loans" that got my attention. Today it is the massive government spending of the last couple of years. Something like six trillion by reports I hear. That spending alone is part of the inflation and such a slug of money will take a while to change hands and be dissipated.
This is a pure guess so far on my part but I figure a lot of that money was down payments and such which will translate into even greater debt loads. By that i am figuring the extra money made it seem possible to buy a lot of things on credit and when the extra money runs low the payments are not going to be met in the future.
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