While I still live a frugal life myself, it is important to recognize just how systematic the problem is. For two generations now (over half a century), the public has been indoctrinated in that it is their patriotic duty to spend; i.e. devalue the fruits of their own labor (disposable income) and take on debt. Basic financial skills have been banished from public schools for over three decades; the FED takes care of the rest of the un-education process by actively disincentivize savings. Why? Because the whole game is to induce segment of the population to take on debt, so that the debt can be transferred to the rest of the population . . . just like Greeks were enticed to take on debt so that the banking elite can take the pound of flesh from the Germans.

The primary fault is not with the borrowers who took on "free money," but with the regulatory system that transfers bad debt from those who made band loans to those who are innocent by-standers. It is the lenders' responsibility to decide whether a loan takes place or not. It's just like if you open a restaurant that offers all-you-can-eat buffet, don't blame the customers for eating too much. OTOH, if the regulators had made laws that mandated all restaurants have to offer all-you-can-eat buffet stocked with unending carvier and can charge no more than $5.99 per head, as a way of driving small restaurants out of the business as large restaurants would be bailed out ("where would people eat if all restaurants failed?" LOL), then the problem is with the regulatory system indeed.

posted by 24.91.39...

• Look at the third picture of the house I just gave up., John Myers, Wed, 20 Jul 2011 21:09:37
  • Saab Certified, nice!, Boston Baab, Thu, 21 Jul 2011 05:39:35
    • Re: Saab Certified, nice!, John Myers, Thu, 21 Jul 2011 08:16:48
  • Trying again, John Myers, Wed, 20 Jul 2011 21:11:00
    • Re: Trying again, TML , Thu, 21 Jul 2011 01:04:47
      • Pity the rest of the world, Reality, Thu, 21 Jul 2011 08:45:41
      • Re: Trying again, John Myers, Thu, 21 Jul 2011 07:57:41
      • house prices in US are so cheap!, sab, Thu, 21 Jul 2011 03:29:39
        • Not in San Diego, Mike Lynch , Thu, 21 Jul 2011 11:24:45
          • Re: Not in San Diego, sab, Thu, 21 Jul 2011 15:16:10
            • Re: Not in San Diego, Bruce, Fri, 22 Jul 2011 10:19:15
        • Re: house prices in US are so cheap!, Les_H, Thu, 21 Jul 2011 06:57:42
        • Depends on location, Noel, Thu, 21 Jul 2011 06:11:58
        • Re: house prices in US are so cheap!, EGD , Thu, 21 Jul 2011 05:36:17
          • Are prices down to NORMAL?, vvk, Thu, 21 Jul 2011 06:17:27
            • Re: Are prices down to NORMAL? Maybe!!, Noel, Thu, 21 Jul 2011 06:26:39
              • Re: Are prices down to NORMAL? Maybe!!, TML , Thu, 21 Jul 2011 07:48:52
                • Re: Are prices down to NORMAL? Maybe!!, John Myers, Thu, 21 Jul 2011 08:06:39
                  • Yes, but..., vvk, Thu, 21 Jul 2011 17:51:54
                    • I agree..., James, Fri, 22 Jul 2011 02:27:53
                      • I used to think that way, Reality, Fri, 22 Jul 2011 08:43:56 <-- Viewing This Message
                  • Re: Afordable housing, BobS, Thu, 21 Jul 2011 12:26:15
                    • Banks not government, Bruce, Thu, 21 Jul 2011 12:59:37
                      • (some) Banks ARE the Government, Reality, Fri, 22 Jul 2011 07:22:30
                      • Re: Government, BobS, Thu, 21 Jul 2011 15:59:36
                      • Re: Banks not government, EGD , Thu, 21 Jul 2011 15:08:44
                • Re: Are prices down to NORMAL? Maybe!!, James, Thu, 21 Jul 2011 08:05:39
    • Re: Trying again, Justin VanAbrahams , Wed, 20 Jul 2011 21:34:03
      • I'm kinda' pissed., John Myers, Wed, 20 Jul 2011 21:58:29
        • Actually Zillow raised $69 million not 1.6 billion. The, JTMav, Thu, 21 Jul 2011 05:41:39
          • Re: Actually Zillow raised $69 million not 1.6 billion. The, John Myers, Thu, 21 Jul 2011 07:56:13
        • Re: I'm kinda' pissed., Tim, Wed, 20 Jul 2011 22:34:44
          • Re: I'm kinda' pissed., John Myers, Thu, 21 Jul 2011 08:11:36
            • How much does a house like that rent nowadays?, Tim, Thu, 21 Jul 2011 09:06:03
              • Rents are running higher than mortgages., John Myers, Thu, 21 Jul 2011 09:47:51

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