October 09, 2008

HousingPANIC Quote of the Day

"Spending more money than you have -- consumerism beyond capability to buy -- it seems to me that's a moral vice. There are reasonable uses of debt, but lifestyle debt is not one of them.

"Who ends up paying the bills? Either you pay the bills down the road, or if you seriously mismanage, someone ends up paying the bills for you -- you need someone to bail you out. I'm hard pressed to think that's a virtuous way to live life."


- Ron Wilcox, professor at the Darden School of Business at the University of Virginia, October 2008

4 comments:

Suzi Orman said...

Its ability to support business changes lessens as new applications are less likely to be compatible with old ones. Another feature of aging tech is that it becomes further removed from the IT team's future vision--making that harder to achieve. This also means information becomes harder to access and analyze as the tech gets older--a particular problem for businesses heavily dependent on data.

Anonymous said...

HOT TUB RON, as he was known at Darden!

romulusnr said...

But the economy doesn't grow if people don't live beyond their means.

Capitalist economics in the current era depends entirely on debt, poverty, and exploitation of both.

I mean, if no one spent what they didn't have, we wouldn't need credit at all.

Cynthia Maniglia said...

What sucks:
House flippers. People who bought up all the new homes that were being built and going for $250,000 brand new and sold them - put them back on the market at $350,000. THEY SUCK. THEY helped ruin the housing market. The helped escalate housing prices.