September 07, 2007

Here's some great advice for people worldwide consumed with consumerism - DON'T BUY STUFF YOU CAN'T AFFORD!!!

Classic!

Especially relevant as housing melts down, and people making $50,000 a year complain to their Senators about not being able to make the payments on their $1 million homes anymore.

Waaaaaaaaaa!!!!

Word to the wise - live within your means. Pay cash. Read the fine print. AND DON'T BUY STUFF YOU CAN'T AFFORD!!

42 comments:

Anonymous said...

debt is wealth. liberate your equity and spend it on things you need, like spinner rims or a trip to vegas

Anonymous said...

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WTF? A fuuny SNL skit. Maybe it is the end of the world after all.

Anonymous said...

Its the new america, I've got a father in law who just started building his "Cash out of california" remodel on his POS shack in Northern san deigo. Mind this is after 3 helocs that he pissed down the shopping channel. Hes still thinks houses are selling and he's going to make a killing, yeah its going to be a killing. All they do is buy stuff with money from the house it would have better to never have taken the "free money" Its fun to watch because he things I'm lame for living within my means.

bickerer said...

Typical scene in America, drive by a starbucks on a Saturday and check out the line of SUVs in the drive thru line.

Damn, these people are to affluent to even make a cup of coffee anymore. I wonder how much of that is heloc money getting pulled from those purse strings.

Osman said...

Because of marketing saturation, designed to leverage human psychology, and the availability of cheap credit - people don't seem to have the capacity to resist being manipulated into purchasing stuff they don't need and can't afford. Maybe the answer is to regulate marketing?

Anonymous said...

Honestly, that's how you have to talk to some people.

christiangustafson said...

This is so true, Keith. It is also the reason why we bubblesitters have precisely ZERO sympathy for leveraged homedebtors.

In fact, the proper response is to condemn the doomed homedebtors as foolish and greedy. They must never join our many "victim" classes.

Salt Lake Mortgage Guy said...

HPers win. Greenspan admits housing bubble and interest rate changes don't work.

michael said...

sounds confusing.

Veronica Lodge said...

RE: Here's some great advice for people worldwide consumed with consumerism - DON'T BUY STUFF YOU CAN'T AFFORD!!!

And why will a lot of people no longer be able to buy stuff they can't afford? Because they will be bankrupt or they will have a House Monkey on their backs:

Homeowners will watch their home's values deteriorate over the next decade. They will suffer in fear, financial insecurity, and despair for 5-10 years, never knowing how much worse it gets before it gets better.

It hurts to watch their beloved home, which is a reflection of their self worth in many cases, decline...erode slowly in value. They will be forced to accept that their house or neighborhood is not immune from price drops.

They'll be unable to borrow against this home again, for remodeling or college for the kids. And what of the retirement plans?

Worse, they realize they are upside down and there is no way out. Unable to sell without bringing big bucks to closing, unwilling to ruin their credit score in the easy exit of foreclosure or bankruptcy, chained to their homes, unable to relocate or move up to another home.

Stuck in an upside down house. Now that is real pain.


V.L.

Anonymous said...

I agree.

Now is the time to gather and hold as much cash as possible.

As ugly as things seem, it's going to get a whole lot worse when the arm resets peak in Feb-Jun '08.

Debt can kill. Debt will kill.

Laurav said...

Love this Video!

I dont understand how people can mess up this simple concept.

Anonymous said...

Without Heloc money, how will people buy stuff now?

Surely not with their flat to declining incomes!

SNARKYSNARK said...

I for one...DON"T GET IT.

what if I want it and other people have, shouldn't I buy it? I have to get that pamphlet and study hard!!!

Anonymous said...

Starbucks and their $2.00 coffee can suck a di*k. I wonder if sales are down yet?

Again, living in DC Metro I do not believe there is much worse than seeing a supposed battlehardened soldier, dressed in BDU's, order a venti double pumpkin spiced caramel latte, take a sip and exclaim, "hmmm, this is just like heaven."

LovingthatBush said...

Word to the wise - live within your means. Pay cash. Read the fine print. AND DON'T BUY STUFF YOU CAN'T AFFORD!!
==================================
What da F*ck. Are you trying to destroy Capitalism & the American way of life?

Get with the program.

Anonymous said...

" Don`t buy stuff you can`t afford!!!" What do you mean don`t buy stuff you can`t afford? It`s my patriotic duty to do so. Damn people, do you realize we really are going to go into a depression if everybody stops buying stuff they can`t afford? Now get out there and start spending like drunkin sailors!!!, I don`t want to have to start saving leftover tinfoil, and Styrofoam meat trays!!!

Anonymous said...

it would have better to never have taken the "free money" Its fun to watch because he things I'm lame for living within my means.

September 07, 2007 12:04 PM
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YA, you'll think he's lame when you have to put him out on the street!

Redshoes said...

Osman said:"people don't seem to have the capacity to resist being manipulated into purchasing stuff they don't need and can't afford. Maybe the answer is to regulate marketing"?


Agree! new disclaimers should be listed at the bottom of all consumer ads to read: "Don't buy stuff you can't afford!"

LauraV said...

"for 5-10 years, never knowing how much worse it gets before it gets better"
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I can't imagine incomes increasing 10 fold to bring house prices back to these levels.

I'm keeping RE brocures for my area for proof because no one will believe prices were ever this outrageous.

1996 median house prices of $176,150 will return...

Anonymous said...

Again, living in DC Metro I do not believe there is much worse than seeing a supposed battlehardened soldier, dressed in BDU's, order a venti double pumpkin spiced caramel latte, take a sip and exclaim, "hmmm, this is just like heaven."

HA HA I really almost fell off my chair laughing at that one. Then I started to get depressed.

Anonymous said...

steve jobs saw what was happening and he lowered to price of the iphone 200 bucks. he knew that no one was buying them at what 600 bucks, that is also why microsoft lowered the price of the xbox. (is anyone still downloading from itunes any more except maybe a song or two a week, I have gotten all the songs I want and haven't ordered in months)
why did gates start pulling money out of mortgage backed securities early last year?
this is why all these companies (including mcdonalds) will start lowering those prices to keep us buying their products. they know there is no money left any more (the happy meal is up to 4 bucks isn't it) if i am going to loose my house and i can't pay my bills now, i am not going to buy an iphone or xbox of course unless they lower the price. (for me it would have to be practically free) these people are ridiculously rich because the cost of manufacturing these products are pennies on the dollar,(in China but they want American's to buy it at America prices but don't want to pay us decent wages to be able to afford to buy this overpriced stuff, say we are too expensive, excuse the fuck out me the only time I made a million dollars I was playing monopoly) but the prices are dollars on the dollars. why should i keep them in this lavish lifestlyle and i can't afford a new sofa for my home but they brag about buying a 30 million dollar hotel i mean home. i refuse to get an xbox for my son but bought him a new bike and told him to go outside to play. I let his friends families buy the boxs and games and send him over to play at their house, if they want to keep those people filty rich and they can't afford to go on vaction that is their money.
i will never buy an iphone because i don't use the phone i have now as much as i pay a month. (you won't see me on the freeway in the fast lane holding up traffic while i am trying to avoid hitting anyone on my cellphone) these people kept raising the prices like people had money trees in their back yard and now the whole ball of wax is starting to melt. There soon will be very little money to keep up with all the goodies on the market and then what. I say these kids have technologied themselves right out of a job because if I can't afford it I am not going to buy it. And alot of people will soon learn this lesson. Little kids will start hearing "No we can't afford it" (they will cry and beg and embarrass their parents in the store but they will acquiesce)
No my credit is not maxed out I am tired of people trying to satisfy stock holders by raising the price of a hamburger 50 cent every couple of months and putting in less meat. I see prices coming down on a whole lot of stuff (and that is what it is) but there will be very few takers, they bought at the top.
Wal-Mart warned the world when they said they would have to lower the prices to keep people in buying that junk, when will the other companies have to follow suit. Then the lay off's come because the stock holders have to be satisfied, the service at most stores is pretty lousy anyway now it will be worse.
It appears that the economy was being charged by charging more interest to people with bad credit and letting people with good credit have the perks (isn't that always the way)well now the people with bad credit can't get anything anymore so where does that leave people with good credit, paying for the perks they didn't worry about before. This all will mesh and it will get ugly. Be prepared.

Anonymous said...

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The guy I work for here in SoCal, who from time to time will tell employees, 'things are a little tight, we may have to hold off your paychecks for a week', but he never did.

Within the last 18 months has himself purchased a 'custom' made sandrail (dunebuggy) $78k. A trailer to go with it $35k.
A 'custom' boat $170k and one for his son...$80k
A new Rolex yacthmaster with 'custom' features and jewels...$28k
Just returned from an Alaskan cruise for 8 people, that he paid for!
He has also bought original artwork, 'custom' made fishing poles, antique rifles.....etc.

All within 18 months, all from a guy who threatens holding your paycheck!!!



Great huh?


.

Paul E. Math said...

But I don't have any money! How am I supposed to get rims on my H3 and granite countertops in the kitchen of my mcmansion?? How am I supposed to go to Disneyland with my shiftless, yuppie wife and our screaming, 'genius', playstation8-entitled rugrats?? I'm losing my home!! Bail me out!!

Anonymous said...

"AND DON'T BUY STUFF YOU CAN'T AFFORD!!"

Buh, buh Keith, it sounds so confusing!

/sarcasm off

Anonymous said...

$2 Starbucks coffee? Uhm yeah 1988 just called and it wants its prices back.

You people are so out of touch with reality. No wonder you think a house should cost $50K.

Anonymous said...

Anonymous said...
steve jobs saw what was happening and he lowered to price of the iphone 200 bucks. he knew that no one was buying them at what 600 bucks, that is also why microsoft lowered the price of the xbox.


=========

Yet you knuckleheads are crying inflation every 5 minutes. Some inflation when prices are going down for everything including homes.

Get your heads out of Ron Paul's ass and try thinking.

Anonymous said...

But iphones are selling! The economy is great! House prices cant be falling!

Anonymous said...

Paul,

Dude chill out man. Disney world is not that expensive. I went there with my nieces this summer while my sister and my BIL were on a cruise. Four day trip including hotel and park tickets was about $2K.

You don't need a heloc for a $2K vacation for crying out loud.

Anonymous said...

"I've got a father in law who just started building his "Cash out of california" remodel on his POS shack in Northern san deigo."

Oh man, don't let me get started on my father in law. He's the poster boy: Lives in Phoenix (where else?), has investment "second home", always wear a cowboy hat & boots without ever being on a horse or owning one, just bought a brand new 42 footer RV, NAR member with a gazillion dollars wasted on stupid gun collection, Goldwing motorcycle forgotten in the garage, everything that comes out of his mouth is purchases he's made, hardcore Republican braindead, never put any of his kids through college because was too busy blowing money with mistresses and crap from China, left first wife hanging with 4 little kids and took off. Never gave one dime to the kids. All that without making any money. But he walks around like he's the oil magnate from Texas.

Did I say he's a baby boomer?

Anonymous said...

But I bought a Krispy Kreme this morning, the economy must be good....ooohh, shute erase that:

"Krispy Kreme Doughnuts (down $1.73 to $4.60, Charts) plunged 21 percent in active New York Stock Exchange trading after the company reported a steeper quarterly loss versus a year ago."

Anonymous said...

"Yet you knuckleheads are crying inflation every 5 minutes. Some inflation when prices are going down for everything including homes.
"

Welcome to the wonderful world of staginflation, my little braindead Republican troll.

Anonymous said...

F STARSUCKS

LauraV said...

Redshoes said: "Agree! new disclaimers should be listed at the bottom of all consumer ads to read: "Don't buy stuff you can't afford!"



"Excessive spending may result in serious health risks"

Anonymous said...

They will never kick out your father in laws from their homes. Who is going to buy them from the bank at least in the near future. During the great depression my grandfather 94 years old, said the bank guy stopped by the farm and said take care of it, we are not going to kick you off because we have too many already. These guys could be the smartest guys around, it could happen. Owe 100K its your problem owe700k + and its someone else problem.

Anonymous said...

"You don't need a heloc for a $2K vacation for crying out loud."

I have a friend working at a bank. He always tells me horror stories about trailer trash that comes in every day looking for a new credit card or credit line because they can't afford to pay for that vacation to Vegas or Florida or California that they "have to take". As if STAYING HOME on your holidays has never been before.

Anonymous said...

Redshoes said: "Agree! new disclaimers should be listed at the bottom of all consumer ads to read: "Don't buy stuff you can't afford!"


Better:
"We have just passed legislation making it ILLEGAL to buy what you can't afford. We begin bombing in five minutes."

Anonymous said...

Bank Debt Becomes as Risky as Corporate Bonds.

http://www.bloomberg.com/apps/
news?pid=20601009&sid=
aZqmVXLc4q.w&refer=bond

Anonymous said...

Sooner rather then later home builders will be force to lower prices rather then give more incentives.

http://biz.yahoo.com/
ap/070907/
beazer_financing.html?.v=4

Homebuilder Beazer Homes USA Inc. says it has received default notices for five senior notes due between 2011 and 2016, though the company denies it is in default on that debt.

Anonymous said...

Bad news for home debtors instant noodle price going up.

The price of regular-size Cup Noodle and cup-type Chicken Ramen will be raised to 170 yen from 155 yen, while that of large-size Cup Noodle will be hiked to 190 yen from 175 yen, the company said.

http://www.japancorp.net/
Article.Asp?Art_ID=15311

Nissin Food Eyes 1st Noodle Price Hikes since 1990

Nissin Food Products Co. said Wednesday that it will raise its instant noodle prices by 7 to 11 pct in January 2008, the first hike since 1990.

The leading Japanese instant noodle maker will take the move due to rising palm oil and wrapping materials prices and the government's recent decision to raise the prices of imported wheat it sells to the private sector by 10 pct for October-March.

hendry said...

Ditech should change their new commercial to People are stupid

Anonymous said...

It is lunacy to think that one can consume one's way to wealth.

Wealth comes from production, not consumption. Real production, as in farms, mines, and factories, not the BS "service economy."

This should be obvious, but, for some reason, is not.