Comparing Latest Economic Crisis To My Own Financial Crisis

After reading, watching, and listening to what's developing with this current econcomic crisis I can't help but compare it to my financial crisis.

I was debt free for many years and had a job that paid well enough to make my mortgage payment and the rest of my bills. I lost (lay offs) my job and had to settle for a job that produces less income.

I had to open up for credit cards just trying to keep the roof over my head and food on the table. Using the credit card strictly for necessities it was working out for a while. Eventually the point came where I could no borrow on credit. My debt to income ratio became so bad there were no more options left, Now I'm on the brink of losing every thing.

At the rate the FED is creating money, inflation is driving the dollar down. Then you have the out of control borrowing from other countries. Which produces a $10 trillion debt. Eventually will there be a time when our government can no longer borrow money on credit from other countries? Everything comes to an end, my prediction is that a day wil come when lending money to the U.S will be a liability just like I am one to creditors .

I feel ya.. I stocked up on things though, so we have supplies of food if push came to shove. Its no fun going from having extra money to having the bare minimum.. I have adjusted to living by the minimum standards as far as extra stuff goes. I don't need the bag I saw in Macy's, or the shoes I saw in journey. Everyone was yelling at me this year on my birthday because when they asked me what I wanted for my bday I was telling them to save their money lol. I think its sound advice, but they don't get it yet I guess. Nice thread

Totally agree and was wondering the same thing myself - borrowing more money to pay off credit doesn't work for us mere mortals so how is it going to work for governments?

When we still lived (more like survived) in England we had got into the credit spiral and ended up having enough, selling up and moving to Spain, to start all over again but without the credit. We promised ourselves that if we didn't have the cash, we'd go without. We managed it for 4 years.

Now we have a mortgage that actually went up at the beginning of October by 80 euros a month. (funny how the interest on savings accounts hasn't gone up too?!) We had to get car finance last year after calculating that the monthly payments were probably equal to what we were paying out on 2nd hand cars and having to keep repairing them. We're 12 months down the line of getting back in the credit game and we really regret it.

We're self employed and don't always get paid weekly or monthly. Sometimes it can be 5 or 6 weeks before we get payments in but the bank won't be flexible with when we make payments and they charge us a fortune if we're even 1 day late. Now I see all this bank/government stuff unfolding and I just cannot see how getting out of credit/debt by borrowing more money will ever work.

reply to post by KaginD


I'm sorry about your situation. Its horrible so many people are in the same boat. What's sad is that there are people that are worse off then us.

If the whole trying to survive off credit doesn't work for us, how does it work for the government? The answer is that it won't. When it comes to borrowing there is always a limit. When that limit comes there will be a complete colapse of the economy and its coming soon.

reply to post by TheHunted


Really sorry to hear you are doing it tough over there . We saw this coming a long time ago . Bought a run down shack on two acres cos it was cheap .Nobody else would touch it cos of all the trash . But the soil was good and thats all I needed to know . we get by on a really low income because we have pared things down to an absolute minimum . Right now I am putting in more fruit trees and veggie beds. A lot of people are .
We keep chickens , buy food in bulk to save money .

If I were in your position right now I guess I would find a remote corner in wisconsin . Get a a job on a farm for food and board only if I had too.

I just dont like to think what the cities will be like when things get worse .
Im a country boy ,so it was an easy decision for me to head for the hills.
Well its the basic survival instinct and god knows thats one thing that runs thick in my family .

I don't think the governments can even print enough money for all of the bail outs for the banks they're talking about, can they?

This is the ghastly result of building a society who's economy is based on credit.

The markets have rallied a bit, but it could just be the dead cat bouncing off the ground.

reply to post by reconpilot


You made the right move, I've stuck around in the way to long. I was just discussing with my parents how we should of combined incomes and created an emergency fund with out placing it in any institution. Just throw it in a jar and hide it.

Its only been within the last few years that I have been interested in the economy. During that time I just really learned how the monetary system works. Its as simple as this spend, borrow, spend, spend, create money, spend, borrow, borrow, and create more money. This is a for sure fail system.

What makes the whole econcomic crisis so much worse are the bandaids they are placing on the the gunshot wounds. Eventually without the proper medical attention we are going to bleed to death just as I have.

I'm no financial advisor, but where is the logic in this so called bailout bill? Is this not the very reason why the economy is in this crisis? Spending money that is not yours, then creating money to payback your debts with nothing to back it. There is a budget in place for a reason. Balance the budget properly and if there is a surplus then I have no problem with a bailout plan. Until then these large companies should feel the same pain I am and lose everything.

Originally posted by TheHunted
reply to post by KaginD

 

I'm sorry about your situation. Its horrible so many people are in the same boat. What's sad is that there are people that are worse off then us.

If the whole trying to survive off credit doesn't work for us, how does it work for the government? The answer is that it won't. When it comes to borrowing there is always a limit. When that limit comes there will be a complete colapse of the economy and its coming soon.

Oh, I know. There are so many people out there that don't have food for tonight! Let alone stocked food. I hate the fact that there are so many people in this country and the world for that matter that are suffering.

reply to post by KaginD


Yes, so many suffering and many more to join them. Don't think we will recover from this one for a while. I wonder what our governments debt to income ratio looks like. We are sooo doomed...

reply to post by TheHunted


The only people who benefit from the bailout are the crooks who leant our money back to us so they could turn us in to debt slaves ! Its crazy ,but the people are beggining to see through the spin and BS .

This is a time when families and communities need to come together ,forget their petty diffrences and wake up . No cooperation ,no survival . Its going to get real bad .

Any persons real value lies in their ability to adapt and survive using the skills they have and developing new ones .

I suspect most of my family will be moving to OZ pretty soon. They have skills that will transfer easily and are highly valued....

I dont know yet/when/ if I will be called back to active duty but family comes first and I need to get mine safe and provided for.

Originally posted by TheHunted

Eventually will there be a time when our government can no longer borrow money on credit from other countries? Everything comes to an end, my prediction is that a day wil come when lending money to the U.S will be a liability just like I am one to creditors .

yes eventually there may be that time, and if your creditors were scared you could bomb them to oblivion (or manufacture a reason) that get's people to back your bombing them you would have seen tons more credit offered to you, even though they know you can't pay it all back.

No gov't has every paid off it's entire debt in full and i don't think the U.S would even if it could.


The bigger question is to wonder why the U.S is in DEBT at all when they can't print there own money instead of borrowing it from "the fed" and then pay interest on it. How is that for a scam that the general population does Not understand.

it's worth typing again..........constitutionaly the U.S can (and had been) coining it's own money and devaluing it all that all it wants. but instead the Actual Gov't BORROWS money and pays interest on it! how's that for a scam? , and that part of finance many high schools seem to leave out.......gee......what a shock

the global financial "elite" have there tentacles around every soverign gov'ts neck and every year they seem to get a bit more leverage on these govt's. Every year the financial system bribes more and more congressman and the private financial sector places more and more ex-ceo's in postions of gov't regulatory positions. Take hank paulson for example, then they (private secotor capitalist) also take positions as presidential advisors. and the back scratching and fox's guarding the henhouse only grows every administration

forget dem's vs. repub's

it wall street ("establishment party") vs. the few american politicians (on the right or left who still do there job and represent the people.)

people need to realize both party's (who's members make up the wall street party) are responsible for the financial chaos we are in now (if they don't)

and this last world Bailout agreement was akin to the govt's taking the noose from around the banks neck's and smiling and putting it around there necks and when house prices fall even more and they can't meet the tremendous insurance costs for the financial system (that they insured) the noose will get tight and the world financial system will have unsurped the power from soverign nations/govt's as they become over whelmed with debt and either collapse there currency's or default.

and people will still be arguing very emphatically how the dems are great and the repubs screwed it up or the republican's are the best and the dems are at fault......it would be more funny if this futile arguing wasn't wasn't true even among the most "wealthy" and "intelligent" people.

[edit on 14-10-2008 by cpdaman]

reply to post by cpdaman


Dude ,you are totally right on the money as far as im concerned .
The whole thing is about reducing the global population to slavery by telling them they owe an unpayable debt that does not exist except in the fraudulent contracts the banks call cash.

I know that things are bad , but I sometimes wonder if the internet provided information, and speculation isn't creating more worry than is necessary. .... My life has been a roller coaster ride of highs and lows. I have lived in ghetto type neighborhoods, and in a gated community with a country club membership. Owned rental properties and businesses. ... I presently live in a mobile home in the woods and have the largest mortgage than I've ever had and half the income that I had 28 years ago. .... I am old crippled up and legally insane, there isn't a thing I can do about what ever the future brings but be as self sufficient as I can and try not to alienate anyone that I can work with to make things better. .... I have been free of credit card debt for 6 years, don't eat out, and don't purchase anything that is unnecessary. The pursuit of the American dream was a game that just wasn't what I really wanted to play but was driven to due to the pressure of the people in my life at the time. .... We as Americans are a resilient people, and can again work together to overcome adversity. There are those that haven't been tested and aren't aware of that and there are others that are convinced that it is better to kill or die before accepting what ever the future brings. .... Reality is that you are a slave to the things you possess or will possess and can always do with less of everything..... A friend of mine that lived a very fulfilling and happy life scolded me all of the time about my materialism. His motto was " If you've got more stuff than you can put in a cigar box and a laundry bag, you've got too much". I always knew that he was right, but never would admit it to him. .... If everyone would stop using credit cards and concentrate on only purchasing things that they need with money that they have, form food coops, raise or grow food, be less influenced by fads and fashions, conserve energy, and barter for labor and services now, TPTB would soon be out of business and we the people would be all the better off for taking control of our lives.

I really feel for you guys, my financial situation is ok at the moment but it still makes me sick to see how many people are really suffering because of credit.

Yesterday I promised myself I would never have a credit card or take out any loan and starting learning some survival skills, hope I can keep that promise.

reply to post by Chilled Zen


Hey, I am glad that you haven't fallen for the trap already,and are aware of how it enslaves those that do. .... As for learning survival skills, it doesn't mean that you need to buy a gun and camping gear and clothing unless you like to camp out and provide wild game for the table. Learning to garden and can vegetables, raise chickens or rabbits for meat, and basic carpentry skills are all things that can improve your quality of life if you are in an area where these things can be done. If not bartering labor or services with others that are able to provide things that are necessary or even of little worth to you but can be bartered for things that are. .... An underground network that eliminates the cursed middle men and bypasses the taxman, is to me, the logical way to get back to the basics as well as surviving. .... Have an open mind, learn to enjoy simple pleasures, seek out like minded people, and share knowledge and ideas.