If you read nothing else today, read this piece (hat tip: Orthonomics) at the New York Times, showing how their economics reporter got himself into major debt. As I wrote on Orthonomics, what is so scary about this piece is how easy it is for a rational, thinking person to lose control.
Congress today passed new laws regarding credit. Most of this is probably going to backfire on the American populace as always, but at least they're trying... right? Right?! ...sigh.
The WSJ has the highlights of the bill. At least most of these make sense; the bigger question is going to be what the unintended consequences will be. (If anyone thinks credit card companies are just going to accept this loss and yet still approve credit as always, they're simply foolish.) What's likely is as this New York Times piece details, which is to basically charge more to people with good credit, which will negatively impact the ability of small businesses and people with good credit to borrow and invest as they have been able to. They'll also charge fees to retailers - which will in turn pass it on to consumers.
Write a book.
ReplyDeleteI think you are coming over to my side of the argument we had way back then about smart and rational people getting out of control with credit. :) :)
ReplyDeleteWelcome aboard!
Erachet - You'd be surprised how many books are already out there...
ReplyDeleteSL - LOL. ;) I still disagree in concept, but it's boggling my mind how people can screw up so badly. He even says so! Sigh.
Ezzie, you mean to use "populace" rather than "populous". I don't do this for every blog, but yours generally has excellent spelling, grammar, and usage, let's keep it that way :-)
ReplyDeleteSephardiLady - about smart and rational people getting out of control with credit[space]
As far as getting into debt, it only occurs when someone rational becomes [temporarily] irrational. It is wholly irrational to buy things that you can't really afford. And that goes for the smallest things, like a Starbucks coffee each day for $2.80, to the larger things, like buying a $460,000 house on what is essentially a $2,777/month income.
[The Editor] Mark
LOL. I knew it looked wrong, and when I hit spell check (and friends know I never use that) that's what came out. I shrugged and went with it. Thanks Mark! :)
ReplyDelete1. Is it me, or did the guy leave me hanging? What is the end to his story? Is he still living in his home and not paying off his mortgage?
ReplyDelete2. I would have thought a reporter for the NYT makes more than that.
3. Think of the trouble he is in, and now throw in yeshiva tuition.
As my friend Michelle on the TV show Full House used to say, "We're in big trouble, mister".
1) Yes. He's awaiting foreclosure.
ReplyDelete2) Nah. Reporters don't make a ton. They get cool benefits I assume, however. Plus, he's in a specific small features section.
3) Or "Uh-oh..."