April 14, 2007

HousingPANIC Stupid Questions of the Day


Why do people with massive amounts of debt, no savings and negative net worth THINK they're rich?

Why do people think people with massive amounts of debt, no savings and negative net worth ARE rich?

21 comments:

Anonymous said...

Why, I took my lesson from the US gov't. I must be worth the amount of the loan, or they wouldnt give it to me. We see a huge problem with the baby boomers who live way beyond their means and no savings!

Anonymous said...

Very intelligent conscious conclusions can sometimes derive from subconscious "magical thinking" assumptions. That is: everything appears to be 100% bullet-proof on the surface. And it really is... (assuming...)

Add to above a strong arguing-technique combined with a lack of curiosity for any data that may disturb this intelligent conclusion - then the "sky's the limit" - also for othervise above average IQ "debt-investors".

Why also smart people defend bad ideas: http://tinyurl.com/39olo3

Tom DeLay said...

After Imus get Rosie O'Donnell then get that Kieth from Housing Panic Blog!

All should be fired for recent remarks they made.

We are the thought police and we are coming for you.

chris g said...

I'm sure my neighbors think I'm hanging on by a thread, driving my 1995 Saturn with 189,000 miles and a dented front end, while my wife drives a 1995 Cavalier with 168,000 miles. The reality is that we actually want to save for our retirement. Hopefully the government will let us keep it.

College_Kid said...

It's what they teach me in school.

What are you talking about?

I suppose you believe the US is not a democracy and the people aren't free either.

Veronica Lodge said...

Why do people with massive amounts of debt, no savings and negative net worth THINK they're rich?

It's all show and no blow. Here's the logic behind the Nouveau Riche philosophy:

If Zillow says your house is worth $1.5 million and you only owe $750 thousand, then by today's standards, you're rich!

Now, you can take out some of that "free" surplus equity and pay cash for the Hummer, the South Seas vacation and lots of expensive toys, because, after all, the interest on home debt is deductible.

Even if you borrow $250 thousand against the house, you will still have $500 thousand left for retirement. And that amount is steadily increasing, because real estate values never go down.

Suzanne researched this, so it must be true.

Anonymous said...

>> We are the thought police and we are coming for you.

No, we're the Dream Police, and we're coming for YOU!

Anonymous said...

>> I'm sure my neighbors think I'm hanging on by a thread, driving my 1995 Saturn with 189,000 miles and a dented front end, while my wife drives a 1995 Cavalier with 168,000 miles. The reality is that we actually want to save for our retirement. Hopefully the government will let us keep it.

Oh God, are you fucked! Forcing yourselves to drive crap cars now with the hope that the gub'ment will let you retire later. Uncle Sam is laughing at you - !right now! - because your frugality now will have NO payoff later. One day you'll wake up, old and decrepit - and unable to drive - and realize that you COULD have had it so good, but not it's too late.

LoneLibertarian said...

As Gordon Gecko said in the movie Wall Street:

"The illusion has become real, and the more real it becomes, the more desperately they want it."

True and True.

Anonymous said...

FYI, don't buy any car made after 1996. The communist OBDII comupter in many of 96+ cars records data like how fast you were going, when you applied the brake, how hard, etc...

All of this can be used against you in a court if you are involved in an accident. The best move is to buy a car made before the Americans started to try to build a better Japanese car and keep it in top shape. It will not depreciate, you will not be subject to high emissions testing fees, etc....and even if you wreck it out you will be able to sell it as a parts car at a high price.

Some classic like a Mustang for $25K is a way better choice than a junk plastic Camry or Impala that will end up in the $4999 lot before you finish making the payments.

Anonymous said...

Working for peon-wages in future business-controlled "debt-correctional plants" semi-prisoned by electronic ankle-bracelets doesnt appeal to me. Or do some of you really think that they gonna let debt-drowning people of the hook just because they cannot pay? Already much thougher bancrupty-rules seems to indicate a certain foreboding future.

As for driving that new shiny cars - how long does the excitement of that really last while driving the usual routes between work, home and walmart? 3 weeks? 4 weeks? Honestly?

How to be rich in three seconds said...

I'm rich - rich no debt and freedom.

I taught economics at a university, and it's a fact that wealth is dependent on comparison with the folks around you. If they all drive expensive cars and you don't, you'll feel poor. If they have two meals a day and you don't, you'll feel poor. Vice versa. Once you can take care of yourself (food, shelter, health) perception of wealth is totally subjective. Change your perceptions and be wealthy.

stuckinthecity said...

because one day they will cashout their 80 year old $450,000 1000 sq ft ranch and live in a cave.....

Shakster from The Ponderosa said...

She was better in the Big Valley.You know The Barkleys,Barbara Stanwick ,Audra,Steve Austin,Fall GUY,Heath,Little Joe,Hoss,Ben ,HOP SING,Paw,Pernell Roberts...OOPs Got the Big Valley Mixed up with the Ponderosa,no matter,Bens boys probably rode down to Stockton to get some nookie from Audra.Rich people for sure.They owned some mighty spreads,but most rode around on Pintos,and Mustangs.Yup when your truly rich you don't need to advertise.

Anonymous said...

The answer is simple. It's all about appearance.

Anonymous said...

I don't wanna be too irreverent here, but I believe the phrase for what you just described is "nappy headed ho rich"

Anonymous said...

"The answer is simple. It's all about appearance."

That does not answer the question. Re-read it!

Anonymous said...

one day my wife and I concluded that there wasn't a person left who would wake up with our net worth and keep driving our old cars. We broke down, drove the old Ford truck to the big city and bought .... a Subaru.

We still have enough left for 99 more of them, so I guess it was reasonable.

Anonymous said...

Funny, my girl has no credit card debt, and 2K in the bank. She is not rich but alot better off than most people with 30K debt and no savings. Those people have alot of stuff though... who cares about owning alot of junk!!

Virgin Bary said...

It’s a ‘Christian’ thing.
If you believe that someone else died for your sins.
What makes you think, one should be responsible for their financial debt.
All you need to do, is except in your heart (convince yourself) that Gawd just forgave all your debt.

Anonymous said...

Virgin Bary Said...

"It’s a ‘Christian’ thing.
If you believe that someone else died for your sins.
What makes you think, one should be responsible for their financial debt.
All you need to do, is except in your heart (convince yourself) that Gawd just forgave all your debt."



No - Christians are taught by the Bible to be good stewards of their money - as - after all, it is not really their money but God's money. Yes, many, many do fail but if you read the New Testament - Jesus talks quite a bit of how to handle money...

Marky Mark