Attitudes towards credit

[draconix]

How many folks do you know that can afford to pay cash for a house? A car? Starting a business?? (If I had enough money to start a business without assistance from the bank, I would have enough money that I wouldn't NEED to start a business in the first place.)

 

I think that's pointing to a bigger issue. If people couldn't afford to buy these outrageously priced houses, the prices would drop to an affordable level. However, the fact that loans exist enables people to be able to afford more expensive houses, and thus the prices increase. It's almost as sinister as college tuition.

 

But then here's another question, does everyone need to buy a house? Can't people rent instead? Can't you start a business a little smaller and work your way up? Can't one buy a less expensive car? Credit is a luxury I don't want to afford. I wish that I knew this before deciding to attend college.

[Aurielius]

How many folks do you know that can afford to pay cash for a house? A car? Starting a business?? (If I had enough money to start a business without assistance from the bank, I would have enough money that I wouldn't NEED to start a business in the first place.)

 

I think that's pointing to a bigger issue. If people couldn't afford to buy these outrageously priced houses, the prices would drop to an affordable level. However, the fact that loans exist enables people to be able to afford more expensive houses, and thus the prices increase. It's almost as sinister as college tuition.

 

But then here's another question, does everyone need to buy a house? Can't people rent instead? Can't you start a business a little smaller and work your way up? Can't one buy a less expensive car? Credit is a luxury I don't want to afford. I wish that I knew this before deciding to attend college.

I agree that the housing market is ridiculously overpriced, I am astonished that any young person can hope to get clear of the mortgages that are required to buy in at the moment.

[HeyYou]

Housing prices have dropped dramatically around here of late, on the order of 40%, and sometimes even more.....Some areas are worse, others haven't been affected much at all..

[Aurielius]

Housing prices have dropped dramatically around here of late, on the order of 40%, and sometimes even more.....Some areas are worse, others haven't been affected much at all..

When I was young my first two houses were under 20k and 75k respectively, one could conceptualize paying off the debt when it was incurred. We have in this country been tying the growth of the economy to housing sales and turn overs. Homes instead of being valued at what they are worth are valued by what they can be sold for, which IMO is a set up for a economic bubble. Oh right...that bubble burst to the surprise of all , the writing was on the wall for at least a decade beforehand.