Do you think people now understand the difference between 'liquid' and 'illiquid'?
Do you think people now understand that when the government encourages you to 'buy' something regardless of price, that those prices are artificially inflated?
Do you think people now get the fact that they should save, or face ruin?
Do you think people now understand that their government has lied to them, and that there will be no social security as promised?
Do you think people now grasp the fact that houses are risky investments, and not savings accounts or ATMs?
Do you think people now understand that they should never, EVER, trust someone on commission?
Some pretty basic questions, but if one good thing comes out of this crash it will be a generation who will save, who will no longer over-consume, who will educate themselves in regards to personal financial matters, and who will no longer see debt as a lifestyle.
Ignorance was not bliss.
October 15, 2008
So do you think people who 'bought' homes with leveraged loans now understand the difference between an 'asset' and a 'liability'?
Posted by blogger at 10/15/2008