Forum Home | Log in | Signup | My Page | Rules | FAQ | Boards | Members | Search
« ALEA Home | Email msg. | Reply to msg. | Post new | Board info. Previous | Home | Next

Re: Wacky idea

By: Cactus Flower in ALEA | Recommend this post (0)
Wed, 09 Nov 11 4:56 PM | 79 view(s)
Boardmark this board | The Trust Matrix 		Msg. 06219 of 54959
(This msg. is a reply to 06218 by clo)
Jump:
Jump to board:
Jump to msg. #

Hi clo,

Yes indeed. But I have this feeling that there's a long run, social process going on as well. The loans themselves have an effect on costs and asset prices.

I understand that the notion of borrowing is not without merits, especially for individuals.

But I don't think we ever consider that the communal costs may just outweigh the individual benefits.

We permit mortgages so that nearly everyone can afford a house, and then, over time, house prices rise so that they cannot.

We permit student loans so that everyone can afford an education, and then, over time, the cost of high value degrees increases so that they cannot.

At the end of it all, I am not sure we end up with bigger houses or better educated people. But we do end up paying off our loans for the entirety of our lives. Ain't that grand.

» You can also:
- - - - -
The above is a reply to the following message:
Re: Wacky idea
By: clo in ALEA
Wed, 09 Nov 11 3:42 PM 		Msg. 06218 of 54959

Good morning Cactus Flower,

I've always thought 'credit cards' created a flawed model & dependency.
'Instant gratification', instead of working towards, living beyond our means.
Over time folks learned to tolerate interest rates higher than loan sharks offer, up to 36%.

I use credit cards, but only for convenience. I always pay when the bill arrives, never owe/pay interest.

I think we might be better off without them & consider the 'UNFAIR interest' we would deprive those institutions ;)))

« ALEA Home | Email msg. | Reply to msg. | Post new | Board info. Previous | Home | Next