Will the party come to an end when foreign investors start to pull out their money from our economy? The subprime lending scare may be just the opening salvo across our bow.
2007-08-19 08:16:05 · 8 answers · asked by Anonymous in Business & Finance ➔ Personal Finance
Generally speaking, I believe that all kinds of debt coupled with easy credit is ruining our country. We've been digging this hole for many years now and we simply need to tighten up on who gets to buy on credit. Back when I bought my first house it was difficult, but I am glad it was, because they were checking thoroughly to see if I could afford the payments even if I had a minor crisis possibly.
When I bought my last house, the banker wanted to immediately give me a line of credit on my home, even though I didn't even ask for it or really even want it. But I let him run it through. I don't even have a job!!! It's amazing! (I paid cash for my house though.)
The subprime problem is just the beginning too. Personally, I'm sort of worried about where to invest my money now. The stock market is not safe anymore. As the line goes in Gone With The WInd.........Land! It's the only thing that lasts!
2007-08-19 08:26:32 · answer #1 · answered by Anonymous · 0⤊ 0⤋
I don't know, the "economy" is such a complex animal I'm not sure any one statement of fact could even necessarily be considered fact or even understood completely. It does amaze me the rate at which people will allow themselves to go into debt, too much car, too much house, spending like there is no tommorrow...whatever, they can have it. I think the problem really is that this at some point doesn't allow any cushion when this 25 year bull market ends. The economy now rely's on 70% of it's strength on simple consumer spending, and when that goes away, when some economic or other event causes that to be reduced substantially, WATCHOUT.
2007-08-19 15:47:16 · answer #2 · answered by The Scorpion 6 · 0⤊ 0⤋
Personal debt does more than effect the debtor, it effects those who are owned money. When one person cannot pay their bills, it has a ripple effect on the people who are owed money. This can pull down the entire society, even those of us who are live within our means and do not owe money to anyone else. The fact that both the US population and the federal government are both in debt means that big trouble in on the horizon
2007-08-19 15:22:32 · answer #3 · answered by xg6 7 · 0⤊ 0⤋
The problem with people and how they are handling their debt is very disturbing. Just look at the number of folks in the credit section who have filed BK and those who have bills they are not going to pay but want more credit.
But that is not the greatest threat by far.
2007-08-19 15:21:36 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Debt is in the top 5 problems facing the country, but it is NOT the greatest. Fanatics that believe GOD has commended them to kill anyone that does not follow their interpretation of their religion are the greatest treat.
2007-08-19 15:43:19 · answer #5 · answered by STEVEN F 7 · 0⤊ 1⤋
Think a scare would change things?
Not likely and not for long.
Reality will have to bite and bite hard.
2007-08-19 18:04:18 · answer #6 · answered by moontrikle 4 · 0⤊ 0⤋
of unsecured debt that is tied to growth of real estate market.
when u cant pay for your ginsu knives oon credit theres no sudden flush of knives on supply, people get kicked out of homes, it screws every1 invested in housing market
2007-08-19 15:36:23 · answer #7 · answered by joezen777 5 · 0⤊ 1⤋
FYI - "personal debt" does not affect our public investment with other countries...think about it...the more we "owe" them, the better it is for them. take China for example...we owe them trillions, but we just but a band on their toy imports...WE, the USA, controls who does and says what...not them. we want them we get them, we dont want them, we tell em to shove off.
2007-08-19 15:20:27 · answer #8 · answered by Dr T 2 · 0⤊ 2⤋