Yesterday was my overdo trip to the barber to see if I still had ears. Apparently I do as I overheard one of the local realtors and a banker (I think) talking about the effects of the recession on the community specifically and the country in general. It appears that 25% of all mortgages are in arrears by more than 90 days. This was mind boggling to me, and I got some very tired brain cells and synapses working overtime trying to figure out this question. "What are we going to learn from this recession and how are we going to change? Or are we going to change?" I guess that is actually three questions, not one.If 25% of all home owners are facing repossession, are those people going to sit back, assess what they have done, and change? Or are they going to start the run on materialism once the economy turns? Are we as a nation going to learn? Or repeat the same mistakes over and over again? Credit is easy, repayment is difficult. A loan of $5000 on a credit card will take something like 35 years to repay when making the minimum payment. Will the banks still push people further into debt by encouraging more "easy" loans?Will we still eagerly accept 0 down and 30 years to pay?
I knew a couple of folks that got through the Great Depression by living on snared rabbits. They learned! it took one fellow about three years and lots of haggling to wear down the dealer before buying a car. He would then drive it for 10 years. Here we have people sinking $70,000 into pick up trucks that will be down to half value in a couple of years. Probably the worst investment that a person will ever make!
Will we learn? Or continue as before? What do you think?
Wow, are my few remaining brain cells tired now!