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Two Out of Three Middle Class American Families on Shaky Financial Ground
- Thread starter unbasslichkeit
- Start date
Old news for those who keep up with economic trends.
People constantly make irresponsible decisions racking up massive debts to buy junk and mortgages they cannot afford, knowing one day the piper will come to collect his due. They complain of gas prices instead of understanding why the prices are going up (gross fiscal mismanagement at the national level causing the currency to crash) and investing in oil companies instead of buying another giant tv (on credit of course).
I prefer to see the bright side. Thanks to this, you'll find increasing amounts of gear for sale cheap and if you know how to short stocks you can make a killing on companies like GM, Coach handbags, and all the homebuilders and mortgage lenders.
There's a long-running thread called "Beginning Financial Investing" that has covered this kind of thing a lot, especially in the past couple months. Some of it might be tough reading, but I promise it'll be far more worthwhile than drooling over figured tops. Crisis = opportunity.
It'll all get much, much worse before it gets better. As far as bass goes, expect to see a lot of niche retailers/builders such as of "boutique" basses/amps disappear along with the easy-credit days.
How's that for a bummer? Might be an unpopular view, but it's coming true and I've been espousing it for some time now. "History repeats" is my mantra.
I hope things improve for you.
People constantly make irresponsible decisions racking up massive debts to buy junk and mortgages they cannot afford, knowing one day the piper will come to collect his due. They complain of gas prices instead of understanding why the prices are going up (gross fiscal mismanagement at the national level causing the currency to crash) and investing in oil companies instead of buying another giant tv (on credit of course).
I prefer to see the bright side. Thanks to this, you'll find increasing amounts of gear for sale cheap and if you know how to short stocks you can make a killing on companies like GM, Coach handbags, and all the homebuilders and mortgage lenders.
There's a long-running thread called "Beginning Financial Investing" that has covered this kind of thing a lot, especially in the past couple months. Some of it might be tough reading, but I promise it'll be far more worthwhile than drooling over figured tops. Crisis = opportunity.
It'll all get much, much worse before it gets better. As far as bass goes, expect to see a lot of niche retailers/builders such as of "boutique" basses/amps disappear along with the easy-credit days.
How's that for a bummer? Might be an unpopular view, but it's coming true and I've been espousing it for some time now. "History repeats" is my mantra.
I hope things improve for you.
I'm in the transition away from that 2/3's. We're on a good financial path, just a bit of credit card debt to overcome.
I just cannot believe the credit card debt some people carry. It's as if interest means nothing to them. Unless it's something that my business can't survive without, I pay for it or do without. Some of my inlaws are still paying for stuff they bought 10 years ago...........and I don't mean their homes either 
I don't understand the new car debt either. $700, $800 per month to drive a new car. My feeling is if you can't pay for a high end ride in cash, you haven't earned the priviledge to drive the damn thing. Why young people that work in construction need a brand new , 60K, diesel, 4X4, one ton pickup truck is beyond my comprehension. Or someone landing their first job out of college needs a 75K luxury ride. Needless to say, my 25 year old Wagoneer is going strong 
It seems to me that if a middle class person isn't making it financially, they are no longer middle class??
I don't understand the new car debt either. $700, $800 per month to drive a new car. My feeling is if you can't pay for a high end ride in cash, you haven't earned the priviledge to drive the damn thing. Why young people that work in construction need a brand new , 60K, diesel, 4X4, one ton pickup truck is beyond my comprehension. Or someone landing their first job out of college needs a 75K luxury ride.
Needless to say, my 25 year old Wagoneer is going strong It seems to me that if a middle class person isn't making it financially, they are no longer middle class??
Middle Class is an attitude not a financial bracket.
It seems to be the idea that you aim for the big house, the fancy car and cool gadgets that you can't quite afford. You work a job with good benefits and a 401K. You think the 401K is going to save you when you retire. You buy stuff on credit then scurry to pay it off. You go on vacations once or twice a year with your 2.5 kids. You have a SUV that you're paying off and maybe a show-offy car like a Lexus. Girls have one or two designer bags that they show off to their girlfriends. Guys have expensive lawn mowers. Then you also have to complain about how the government is holding you down. You vote to have the rich taxed more, not realizing that #1 your taxes will also go up and #2 that rich guy that's getting taxed more is your boss and he may choose to close the company you work for.
Middle Class people scorn others who choose to break out and open their own business. And they are sure the reason they are in such a bad financial position is because of the rich...they should spread the wealth. Not realizing it's the car they couldn't quite afford and their desire to live like the rich when they aren't that got them in trouble in the first place.
Just my opinion.
It seems to be the idea that you aim for the big house, the fancy car and cool gadgets that you can't quite afford. You work a job with good benefits and a 401K. You think the 401K is going to save you when you retire. You buy stuff on credit then scurry to pay it off. You go on vacations once or twice a year with your 2.5 kids. You have a SUV that you're paying off and maybe a show-offy car like a Lexus. Girls have one or two designer bags that they show off to their girlfriends. Guys have expensive lawn mowers. Then you also have to complain about how the government is holding you down. You vote to have the rich taxed more, not realizing that #1 your taxes will also go up and #2 that rich guy that's getting taxed more is your boss and he may choose to close the company you work for.
Middle Class people scorn others who choose to break out and open their own business. And they are sure the reason they are in such a bad financial position is because of the rich...they should spread the wealth. Not realizing it's the car they couldn't quite afford and their desire to live like the rich when they aren't that got them in trouble in the first place.
Just my opinion.
A year or so ago I saw myself drifting in this exact direction. Minus the raise taxes on the rich part, there's no way I'd vote for a democrat.
Yup.
You make money nearly free with ridiculously low interest rates and this is what happens. People borrow. Do you blame them? And the inevitable housing and mortgage / credit crisis is just getting started.
Things are going to get a lot worse, I agree with much of what SMASH wrote.
You make money nearly free with ridiculously low interest rates and this is what happens. People borrow. Do you blame them? And the inevitable housing and mortgage / credit crisis is just getting started.
Things are going to get a lot worse, I agree with much of what SMASH wrote.
Yup, that's how i see it. Happy driving modest cars, living in a modest (comfortable) home and watching my old school crt television, knowing I don't need to keep up with the Jonses... thanks.
I have 3 kids and a stay at home wife. I work 1 FT job, 1 PT job (freelance CNC Programming for a shop) and gig at least 1-2 times a week. We have a 2003 Minivan and I drive a 95 Jeep, our house is a small 3BD 1 Bath that is in no way extravagant, all of our furniture is used, I only own 2 pairs of jeans, my wifes Channel Handbag is a $40 knock off.
I cannot support my family without help from my parents. Oh yeah, we only have 1 credit card with a $300 limit.
What am I doing wrong?
I cannot support my family without help from my parents. Oh yeah, we only have 1 credit card with a $300 limit.
What am I doing wrong?
Not as long as they don't bitch about making their payments every month!!
IMHO, the core of the problem is people caring too much about what others think about them. Status..... Keeping up with the Jones's etc. I live in a neighborhood of Lexus drivers and could give a flying EF about what they think of my Jeep. I could walk in to Lexus dealer tomorrow and plop down CASH for one but I'd rather send my kids to college or retire early. I keep my house and yard nice in order to keep my property values up. Beyond that, I could care less what anyone thinks. It's like the broken down mobile home with the new Caddy parked out front phenomenon we see here in FL so often
Catch-22
We cannot afford to move, Our house is worth less than we owe on it.
You are correct though, CA sucks financially right now. We would love to move to New Jersey but how to afford it?
jive1
Commercial User
One of the things the general public doesn't realize is that much of subprime lending was driven by the demand of investors. You didn't have to go further than your mailbox to see how agressively these investors were seeking sub-prime loans. I was reading an interview with Greenspan and he was relating how many investors were demanding more and more subprime mortgage investments. Why? Because borrowers (thus creditors) gain equity in a home by the mere fact that the market drives up prices. It didn't have much to do with the qualities of the borrower.
Now the economy is facing an issue where a bunch of people bet on some bad horses and the bookie is looking to get paid.
This caught my attention, mainly the reference to Coach. Explain please, when you have a chance. If you prefer a PM, that's fine.
-Mike
wow, the middle class y'all are talking about sound like rich folk to me. golly, does that make me poor?
Yeah, the descriptions of "middle class" sound more to my like "rich people".
Honey, I do believe we is po folk.
Cherie
