Comments on: How to Own a Home — Revisited http://www.financialreflections.com/how-to-own-a-home/108 Personal Finance for those stuck in the middle. Sat, 13 Feb 2010 22:32:09 -0800 http://wordpress.org/?v=2.8.4 hourly 1 By: kiesha http://www.financialreflections.com/how-to-own-a-home/108/comment-page-1#comment-1687 kiesha Fri, 03 Nov 2006 15:58:49 +0000 http://www.financialreflections.com/debt/how-to-own-a-home/#comment-1687 I do agree that most Americans aren't nearly as financially savvy as they should be. However, we can't ignore the fact that the cost of nearly everything has risen at a tremendously higher rate than incomes over the past 30 years or so. I mean, back in the 50's and 60's couldn't a family buy a new car with cash? Financing wasn't necessary. We as consumers have fallen into the trap of borrowing to pay for things that have simply inflated beyond our reach. And the banks take full advantage of that. There should be some sort of consumer strike...instead of stretching ourselves to buy cars and homes that we can't afford, we should all band together and just stop buying until prices line up with incomes. Wishful thinking -- I know. But I do fear that we are headed toward another depression in my lifetime. I do agree that most Americans aren’t nearly as financially savvy as they should be. However, we can’t ignore the fact that the cost of nearly everything has risen at a tremendously higher rate than incomes over the past 30 years or so. I mean, back in the 50’s and 60’s couldn’t a family buy a new car with cash? Financing wasn’t necessary. We as consumers have fallen into the trap of borrowing to pay for things that have simply inflated beyond our reach. And the banks take full advantage of that.

There should be some sort of consumer strike…instead of stretching ourselves to buy cars and homes that we can’t afford, we should all band together and just stop buying until prices line up with incomes. Wishful thinking — I know. But I do fear that we are headed toward another depression in my lifetime.

]]> By: DebtBlog http://www.financialreflections.com/how-to-own-a-home/108/comment-page-1#comment-1686 DebtBlog Tue, 16 May 2006 13:38:16 +0000 http://www.financialreflections.com/debt/how-to-own-a-home/#comment-1686 You hit the nail on the head. We've kept the engine of our economy chugging along on home equity for a few years now. Consumer spending has been driven in part by people pulling equity our of their homes. They are using that equity as their own private bank. This can have a short term positive effect on the economy as a whole, as we've seen recently. If/when interest rates rise and/or real estate values level off, or god forbid, drop, we could all be in for a really bumpy ride. Hang On!! You hit the nail on the head. We’ve kept the engine of our economy chugging along on home equity for a few years now. Consumer spending has been driven in part by people pulling equity our of their homes. They are using that equity as their own private bank. This can have a short term positive effect on the economy as a whole, as we’ve seen recently. If/when interest rates rise and/or real estate values level off, or god forbid, drop, we could all be in for a really bumpy ride. Hang On!!

]]> By: LAMoneyGuy http://www.financialreflections.com/how-to-own-a-home/108/comment-page-1#comment-1685 LAMoneyGuy Mon, 15 May 2006 19:50:09 +0000 http://www.financialreflections.com/debt/how-to-own-a-home/#comment-1685 Very nice post. Too true about the "new way" to buy a house. Some people are going to get burned royally. Very nice post. Too true about the “new way” to buy a house. Some people are going to get burned royally.

]]>