bloody spaniard wrote:True to all of the above but I was really just starting out in 1988- Ron's last year. Opportunities were everywhere if you worked hard. Sort of reminded me of the land grabs from the 1800's. Disorganization everywhere but the gold in dem der hills awaited! LOL
In reference to your homes comment, I remember my folks finally "making it" when they bought a 3 car garage, brick home with about 4,000 square feet and a fountain out front in a suburb of DC circa 1976. Today the fountain doesn't work and the new homes in that area are easily 30%+ larger with less land of course.
I feel sorry for "kids" just starting out these days. Just think they have it rougher.
If you figure out what has changed since then,
you can win this race.
just 50 years ago, mortgages were unheard of. No way could you convince folks to go into debt for the rest of their lives. A new car every 3 years- not even for the rich, that's why they made MB to last a lifetime. Interest only loans where the principal is never paid- are you kidding. Reverse mortgage- the thought alone was absurd.
In essence we have made the public gullible and put their guard down completely about vital things such as not going into debt for life, having equity and savings.
We have gone from bankers making few dollars a month on fees collected from checking accounts, to free checking cause they are making at least $500 a month from the average household. Its utterly unbelievable. They even drive the news and culture. Even if you have your house paid off and dont give into the hype of owning a new truck every model change, they will tell you to get a second mortgage to build a preppers shelter.
John Gotti (rip) gave us the clue we needed. He said when you owe the bank $50,000, you got a problem, when you owe the bank $500,000, they got a problem.
Small business and individuals can be telling the bank to go fly a kite like GM and Apple or thousands of others- but they dont because they have been brainwashed into believing your reputation will be ruined, what will the neighbors think. They have used that stick to keep us beholden to them.
Here is an exit strategy if you really think the world is going to crash- borrow like its your last week.