Sukunai wrote:I guess this is a bad time to mention the piece of paper I have on my wall mentioning my business education. Probably don't want to look my business plan either.
Probably also a bad time to mention the BANKS made this problem we are discussing.
Is this a good time to ask you how old you truly are? what life experiences do you actually have? I'm 46, I've been married 22 years. I'm the head of the household and I have a 14 year old son.
And I have no debt. Pretty cool eh. More than I can say for the US government (I don't want to make you think I think the Canadian government is any better by the way).
I know precisely how credit works. You borrow money you want from someone else. You use it to pay for something. You owe the lender that sum plus something more. If you don't pay it back soon you get to keep on paying the lender. And the more you borrow, the more you get to pay out without actually paying off the debt.
Did I miss anything?
OH IS THIS AN EPEEN MEASURING CONTEST! LET ME JOIN IN!
Your assumptions are incorrect. I am 28 years old and a Ph. D Candidate in the top ranked Computer Engineering College in the country (EGO++) and also have no debt nor have I ever had any major debt in my lifetime. In fact, I have the highest possible credit score possible according to government reports. I'm surprised folks view 'having no debt' as this huge accomplishment.
I graduated from the 2nd highest ranked Electrical Engineering college for my undergrad and have a Masters degree already (ZOMG I HAVE PIECES OF PAPER ON MY WALL TOO). I worked three years in the industry at a little company named AMD as a Product Development Engineer making microprocessors that many people on these very forums use on a daily basis to make their videos. I'm willing to bet that job earned quite a bit of money in comparison and many here would view it as 'cool' or 'respectable.'
In relation to the discussion in hand, I have taken advanced economics classes during my graduate coursework, as well as finance, accounting and venture capitalism classes and my father has his Ph. D in Economics (and has taught at various Universities) and my Mother has her Masters in Accounting. I also invest money in the stock market with what profits I did save while working and do some day trading and have a 401k that I watch closely. In short, I know my shit on the economy and business so don't lecture me.
Did I miss anything in the EPEEN measuring? Can we actually get back to the discussion instead of you questioning my credibility or you trying to boast?
Back on topic, just because you have a degree doesn't mean shit. Clearly you don't know how things work b/c earlier you mentioned you have three credit cards. You are a hypocrite b/c credit cards work b/c you *DING DING DING* are borrowing from the credit card company to buy something that you did not have the cash on hand to buy. In admitting this, you more or less conceded that you too have borrowed money.
Did you also pay for your car or college IN CASH? If you took out loans for those then you'd also be a hypocrite. I guess everyone who doesn't pay in cash is an idiot by your logic. Guess a lot less kids should go to college eh?
Again, if you think RESPONSIBLE ADULTS borrowing money for a mortgage to buy a house is stupid then well...you're stupid. You seem to understanding the simple concept of lending and yet don't understand the actual principles behind it and why people do it. DWP has (multiple times) tried to explain it and yet you persist. Then again, you're still renting at 46 and most folks would view that as a bad investment. It's the stupidest investment you could ever make. You actually own NOTHING and have NOTHING to show for paying your rent. It's why people BUY HOUSES.
Let's do some simple math:
Let's approximate that your rent is roughly $800 /month (probably more)
Let's say you have rented for 24 years (since you were 22).
24 years * 12 months a year * $800 a month = $230,400
That is how much money you have NOT put into your own equity or into a house and WASTED on rent.
You could have bought a house EASILY with this money. If you took out a mortgage, paid it back at roughly the same rate as your rent, you would now own your house and have actual equity. That's why my parents did, that's what my coworkers do and that's what just about every responsible adult does in just about any country in the World. What idiots they must all be. I guess we should all be renting and owning NOTHING.
How stupid of us!
As for the actual causes of these things, many folks have already discussed the causes, but you seem to have missed those and just keep ranting about how awesome you are...