Predatory Lenders? Or Predatory Parents?
Good Morning
HOME TOWN NEWS: Last night I was watching a game show (which is something that I rarely do), but when they interviewed the contestant, it caught my ear. The game show host asked the college Junior what he would do if he won the money.
Before I tell you what he said, he had previously divulged that his parents were both educated professionals and that he was studying chemistry and biology. In other words, he wasn’t in college with a grade point average of 1.6 on a football scholarship.
His plans for the money were to throw a huge kegger, go to
The next contestant, a younger single professional, said that if she won, she would take her friends to
The first contestant on that show was also a younger professional female who was going to take the money and go to
You think I’m making this up don’t you? I wish. I view most everything from an economist’s standpoint, mixed with a large dose of common sense.
What did each of these contestants have in common? No, I mean other that being in la-la land. They are convinced that there is no need for saving. They are convinced that next year will be just as lucrative as their past years. They are convinced that there is no end to the money and the flamboyant lifestyle. I could go on, but in short, these people are ill prepared to live in Reality-land.
So how did they get that way? If I had to guess, I’d say they were raised with those beliefs. Let’s say that a person was 10 in 1990. That’s the year that the
Money was passed out like water by the FED and credit was available for one and all. Interest was cut to 1958 lows and the real estate express was doing 90 miles per hour on a dead end track.
So, to a now 27 year old college graduate, life has been one big bowl of cherries. The parents were enjoying incredible rising home values, increases in pay, and like any red blooded American, incurred debt up to their eyeballs. But, to the children (now big children) this is the only life they had ever known.
The parents had borrowed some $2 Trillion from home equity and the whole thing had the appearance of year-around
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Mornin’ Michael -
The good news is all these entitlement kids are going to be fried once the tables are turned. It seems anger is now getting close to the dangerous level in all age groups.
Anger at all levels does not a nice situation make.
Que no, Señor?
Mickster
Mickster,
That is a subject that I considered in very recent times. Once all of these people from every age group understand that they have been led by government to a place called “Nowhere.” They aren’t going to happy campers.
When life is too good, or at least has that appearance on the surface, you arrive at one of my sayings, “If it seems too good to be true; don’t ask why.”
I’m just not sure, as a society, we are prepared to deal with the coming reality that “Nowhere” is not a fun place to live.
There will no doubt be some hostility shown.
A friend said he can hear the speech now,”We all need to tighten our belts to get through these tough times. If we all work together we can rebuild the greatness that was once America.”
We, of course, does no include government and big business leaders, but then, it never has.
Good Morning Sir!
Education of our children! I would suggest there is very little that is more important. So, how are we doing? Your examples don’t provide an encouraging answer …
In my judgment, one of the remaining few good institutions for education is Hillsdale College. If you don’t mind, Mike, I’ll direct those interested to a recent article written there [the URL below] - “A Return to the Constitution”:
http://www.hillsdale.edu/news/imprimis.asp
The premise upon which this particular editorial was written is obvious from its title, but there is considerable content within speaking to the foundation for good education. Your readers may find it of interest.
Wake up America! It’s later than you think …
Keep up the great work, Mike!
Roger,
Thanks for the post. Yes, it’s going to be quite a wakeup call when the chickens come home to roost as my grandma used to say.
We have simply come to far too fast and the pace is unsustainable. We live in a giant pyramid scheme that has reached saturation.
In the next few weeks we will see the FED lower interest rates, infuse capital, bail out banks, bail out borrowers and try to get a couple of more miles out of a dead horse.
In reality it will simply make the inevitable end much worse.
If we can simple educate our kids to live within their means, we will made a great stride forward.