OT - Economics

Earlier this week on one of the morning news shows they were talking to a couple in danger of losing their house. They mortgage payment had quadrupled. They had put $500,000 down on a $1,500.000 house, with a mortgage that let them pay just half the interest with the rest being added to the principal. When the loan reached 110% of the original amount full payments had to be made. Their payments went from $2,000 a month to $8,000 a month. She was a real estate agent, she knew what she was doing.

Alot of the young ones are in trouble, but what did they see growing up? Many of us got wealthy because of inflation weather we insist it was nose to the grindstone 24/7 that we tell our kids about. We lived through better times, and the ones that bought houses, farms, equipment etc. are the ones who "won". Anyone who got ahead maybe did not just pay rent. Little doubt our net worth has alot of inflation if we actualy admit it. When we lost our jobs there were many to choose from compared to today. NO NO NO not the ones that won't pay the gas to drive us to work--they don't count in my book.

Yea kids seem to never want aunt Joans old furnature because they could make the payments on new, and the finance companies chased them all the way to forclosure. They had a idea what dad made for wages, and they are making three to four times that, so why could't they afford it?

I know government run healthcare is not supposed to work, I got news for you... it can work. The problem is managment. The VA is government run, and I could not so much as ask for better care in Iowa City or Dubuque IA VA. In the last five years I have spoke to less than a handful that were unsatisfied. Anyone care to poll any other hospital? There are VA's that are bad news at best, but it has to revolve around managment. I'll give ya this, that usualy government seldom adds value, and never makes much stuff better as we all know.

Good jobs are few and far at best, and it looks to me like only the tip of the iceberg. Us old folks seen this coming, and we cried wolf for years, but then we was wrong for many years after we first cried out. Pretty sure we are in deep doo doo now, and we all kinda give up. Anyone can come up with numbers, but each and every one of us has alot of debt to pay off, like $32,000.00--$42,000.00 to pay off our national debt. Probably the politicians have a cure or means to do fix that. Does the dirty words higher taxes seem like their cure?

Big business is driving the country now, lower wages. Sender over the pond happens when they can't find min. wage or less helpers.

Good to hear they are wanting to hold off forclosure for the distressed homeowners. Bet we will send the money to the bankers instead of the homeowners. Sure hope we don't have to mail out letters telling them it's coming cause that gets costly I hear.

I have made the remark that CRP acres are paid for by tax dollars so we own the crop. Why not pay a fair price to plant and harvest a corn crop instead of weed crops. Then we own the corn crop that gets turned into fuel for our military, federal, or state owned vehickles?

Years ago my wife and I saw the handwriting on the wall, as it were. We could see that the only way we could afford to live the modern version of the "American dream" was to make all the sacrifices we saw those around us making. Such as two incomes and all the accompanying expenses. Such as turning the care, education and responsibility for our children over to the "hired help". Etc, etc.

These were sacrifices we were unwilling to make. So we found a piece of land for which we could pay cash. We then proceeded to rent until we could build a house, again for cash. It took an awful long time, but the end result is that we own free and clear what others took advantage of "easy financing" to get 15 or more years before we did.

That being the case, I would have to say that constantly spending more than you earn is a no-win situation. I know the national economy relies on us fulfilling our patriotic duty of spending our entire paycheck as quickly as possible, but individually it is lunacy. The only solution to this problem most of us can access is not at the ballot box. True, there are significant differences between the two major parties. Economically, the differences are insignificant, in my opinion. No matter who you vote for, they're going to screw things up economically. The solution is with Americans growing up and no longer playing the game. Too much to ask? Probably.

Okay, I'll shutup and go back to listening to the conversations here at the coffee shop.

Christopher

Granted I have seem a few that purchased high priced homes just to sell for a proffit to earn enough for a good part of the home they planed to live in.
Some made it some didnt.

No way that one whole income should go to housing. Thats just stupid.
And my friends that is not the government making people do that. Its greed and coveting.

If that happened then the talk about jobs and health care would be moot.

How? Because countries like China don't have restrictions that our domestic industries do- like pollution or worker safety. Doesn't the Chinese govn't subsidize their industries- such as with the value of their currency? (this may be changing with our cheap dollar) Their industries don't have to pay for workers' health insurance and wages are dirt cheap. Here we have a host of infrastructure (property taxes and countless others) to support. How can we compete? What do they buy from us? (only raw materials to make more things to sell us) The end result with China alone is we have a trade deficit with them around $1 trillion.

cant blame jobs going over seas on NAFTA...

Although some areas have suffered more than others.

There is no way that the US could keep going like it did when after WW2 we were the only country that was still in working condition.
That gave us an unfair advantage. And we took advantage of that.

Now though all the other industrialized countries are catching up or have surpassed us.
Putting our heads in the sand and wishing the world would not change is not a solution.

Fact of the matter is. Unskilled High school drop outs can no longer. Quit school and get a factory job that pays well over what it should.

I know its cruddy but we are going to have to buckle down and earn it.

Hey they have a real shortage of CNC operators around here. Welders too all the skilled trades are in short supply.
just think what its going to be like job wise when all the babby boomers retire? Who is going to fill the millions of jobs left vacant?

That also reminds me, listening to Beck on the radio, one day being informal, he messed up a commercial he was reading. He joked "there goes $10,000". No doubt that's his fee for doing a commercial. Things are way out of wack.

And- for young guys starting out around here, there's few opportunities. You mentioned being a CNC operator. I began life farming, then schooled as a tool and die maker and gave up farming. The factory where I trained is empty and rusting away, as is the Chrysler factory where I worked the majority of years. The factories that are left in this area pressure workers to work for less than a living wage- ala Mexico, or they'll close. They do eventually anyhow.

Same goes for $15 hr CNC guys. Some will take that job to gain experince. Then leave when they find better. Some lost good jobs and take till they find better.
Then there are the $15 hr guys that are there because their drinking/ drugs gets them fired from the better places. they will be there forever.

If your good at what you do and work hard at it. You can be gainfully Employed for a good wage.

With the way companies and economies work now.That just wont work any more. You cant count on staying at Ford for 30 years. Things are likely to change after 5 years. So you need to be prepaired.

Now its about skill sets. Decide what type of work you like and develope a skill set to market your self in that field. Then keep ontop of the skills so when things change you are prepaired.
That way you are defined by what you can do. Not by who you do it for.

My self for example. I like working with my hands, Working out side, Like to drive, also like computers.
My skill set includes: Sales, Supervisory,Military, telicomunications,Net working, Computer repair, Under ground cable locating, Human resources,Delivery, Damage investigation and resolution, Web Design, Plus I keep a Class A CDL just incase.

Moral: If your on top of your skills the who you work for takes care of it self.

Right now I work for the Phone company, Driving around, Instaling phone lines, Instaling DSL and doing home and bussiness net working. All the stuff I like.

When and if I get laid off. Possable because these places are run by Idiots.
After being disapointed because I like this job.
I would have another job in about 3 days. Then another really good job in about 3 mos.
And thats not dependant on who the president is. Who runs what oil company.What social program is in the news. Or any one else for that matter.

It will be because I have planed for that event in advance.

Its also nice not caring what your crazy boss does. If your on top of your skills. They have no power over you. You hold the cards not them. You dont have to work for a jerk.

BTW- If we can"t afford "the war", how in the world will be able to afford a program 5-10 times the size of "the war"?