One of the things that I really find most interesting is the massive growth of our economy over the past 10 years. And it is just funny because hindsight is always 20/20.
You can look around at all of the real estate that is grown over the past few years. People were buying houses in Florida New York New Jersey and even though I will never be going up in value very fast. You could buy a home and be up 5 in just one year’s time. May be you will ask how does that happen? How can you be able to buy something and have a go up in value so quickly? Well, the answer is plain simple. The banks were in on it.
The banks were willing to lend money to people on the house that they said they would give a higher value for. Then appraisals were coming in super high. People were taking money out of their houses equity and putting it into their homes. And added to that, they take out money for home improvement as well. So they would take out money on the house against their house, so the house would be worth more money. I go crazy to think about it really. A home equity pomsey scheme.
And you know what the really funny part about this? It was when people would take out home equity lines on their house to payoff credit card debt. New York State showed the highest statistics for this. After all their houses go up in value very quickly so people in New York would take out money against the house to pay off the credit card debt. The only problem with this is that they can pay off their credit card debt with their equity there is no pain felt and nothing really happen and yet they did not feel the money leaving them. They just had less credit card debt but there was no suffering. And of course, without any suffering there is no change in life. So what happens when there is no change? Will people
keep spending money on their credit cards?
The statistics have shown that people whose then amount of money on their credit card debt and then pay it off of equity, 90 of the time it comes back up to a higher balance on their credit cards than what they had before. What does this mean? And so what is the bottom line? Whose fault is it? To sum it all up and make it all short, it is everyone’s fault actually. And you may ask why? Banks indeed lend money out to people so easily and thanks to them.
The greed of the average Joe consumer caused people to spend more than what they made society overstretched its boundaries. All of the games that we had are now being raised our current recession if you are reading this people, right now you should stop your credit card debt Ohio.
![[Valid RSS feed]](http://www.look4articles.com/images/icon_Rss.png "XML Feed For RSS"){kind=icon}
Category Rss Feed
Print This Article
Add To Favorites
![[Valid RSS feed]](http://www.look4articles.com/images/rss.jpg "XML Feed For RSS")