The Numbers Say We Love Debt

Total seasonally adjusted consumer debt increased by $15.5 billion, or a 7.5% annual rate, in November to $2.51 trillion after a revised 1% rise in October, the Fed reported. It was the biggest gain in outstanding debt since August.

Source: MarketWatch 1-8-08

I guess we can't break the spending habit. Imagine how much interest the banks are earning off this mountain of debt. I said it before and I'll say it again, I wish I was a bank <G>.

Maybe you'll never be one, but you can be 0.0001% of one.  Go buy some stock in a bank.  When I worked for a bank I had part of my 401k invested in it.  It was by far the best performing 'fund' I had.  Of course that was around the time the tech bubble burst.

Isnt there a difference between good debt and bad debt?  I mean, im sure that most of that consumer debt is bad debt, but if you are obtaining debt in order to make money in the future, that really doesnt profit a bank too much, and it helps you out.

On that subject, however, what does it take to start a bank?  A lot of money?  I know this vietmanese couple that started a bank two years ago in the middle of a thriving vietmanese community near where i work.  They seem to be doing very well, as they have just opened up another branch.  So, what does it take to start a bank?

Yes, Americans love to spend. After all, we only live our lives once. That is why the current economy situation is putting a strain in our life style. We simply cannot afford this extravagance  life styles and something definitely have to go. Everybody suffers right now and have to make the painful decision to cut corner here and there.

We're told by the government growth is good for the economy. We're told by banks they want to give us credit, we're told by advertisers we need, must have, are losers without, stuff!

We're told the spiralling debt level is bad, we're told by our spiritual advisers love of money is bad, we're told by our bank too our level of personal debt is bad.

Who is right? I think every person must decide their comfort level and stick to that.

I think one of the things that is really a huge trend, and I say this from talking to my friends, is that it is viewed as the acceptable and the thing young couples and ppl starting out are supposed to do.

You graduate or get married and it is ok to borrow your entire life from banks and lenders.  The rest of your life is supposed to be spent paying it off.

We need to get out of this trend and live the lives we can afford.