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Automotive News & Views Are gas prices fueling your pain? 
10042 messages, Last post on Jul 12, 2008 at 3:07 PM
You are in the Automotive News & Views Forum. Your Hosts are steve_ & claires
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Replying to: lemko (Mar 13, 2008 10:50 am) It only has to do with the fact that almost all of us are spending our future earnings today. The access to easy credit is what increases the money supply. It doesn't matter whether you give it to GM or to Wal-Mart or to Toyota or to the local plumber. As long as everyone only spends what they actually make in a year and nothing extra then the money supply can't get out of balance. It's only when the Fed and the banking system give us easy money to spend on whatever do-dads and junk we need that extra money is printed. This increases the money supply and decreases the value of each dollar. Reign in credit and you'll see the US$ start to climb again...but we'll also go into a crashing recession/depression. but we'll all be better for it.
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Replying to: kdhspyder (Mar 14, 2008 5:09 am)
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Replying to: lemko (Mar 14, 2008 5:13 am) That's a double whammy. Then strike three on the money supply. Consider all the people that became real and paper millionaires on their investments in the 90s. Were these profits real? To an extent yes but it also created sudden wealth which was spendable. Take the 'Redmond Millionaires' who suddenly were able buy like they've never bought in their lives. Picture a $25000 a year maintenance worker suddenly having a million bucks in the bank generating $50000 in interest annually? Helloooo. |
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Replying to: lemko (Mar 14, 2008 5:13 am) And these same people are probably also crying because they have a giant SUV in their driveway with terrible MPG that's also worth less than their loan balance. Not saying that we shouldn't help these folks, but any financial help they get should have a future payback requirement and not just a free ride until the next time they do something stupid. |
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Replying to: kdhspyder (Mar 14, 2008 5:09 am) It has to happen sooner or later. Lowering the interest just adds to the problem. I have friends that may lose their homes because of shady lending. And poor planning on their part. Too bad our schools do not teach common sense economics. Kid turns 18 and here comes a credit card application in the mail.
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Replying to: gagrice (Mar 14, 2008 5:42 am) Do not spend what you don't have. Spend a little less than you make. Regards, OW |
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Replying to: gagrice (Mar 14, 2008 5:42 am) But for the majority who saw interest only/ARMs as a way to get the house of their dreams, then sorry, let them foreclose the house. Last I checked the constitution doesn't state all citizens have a right to own their home. Gagrice, your right on the money. It's sad that many people don't understand how compounding interest/amortization works. They just see a monthly payment that they can afford completely disregarding the actual total cost those payments. Ironically vehicles are the source of money troubles for many. Many are screaming about the cost of gas, but give very little importance on what really costs them. Paying interest, taxes, insurance, etc, on a depreciating asset. Considering all of that, the fuel cost in my Suburban is small. We are going to my in-laws this weekend. It's about a 300mile round trip. We can take my wifes GrandPrix (which we hate) getting 25mpg or my Suburban (much more room and less fighting between the kids) and get 16mpg on the same trip. Hmm, it will cost about $41 to drive the GP and be uncomfortable vs. $64 in the Suburban riding comfort not to mention less fighting of the kids. I'll gladly pay the extra $23.
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Replying to: circlew (Mar 14, 2008 6:07 am)
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...to save money on fuel from the Philly newspaper: http://www.philly.com/philly/hp/news_update/20080314_Area_commuters_find_tricks_- to_trim_gas_costs.html
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Replying to: bobw3 (Mar 14, 2008 6:11 am) The top ten economies of the world in 2004 and their respective values in millions of US dollars, after China's new tally. Country US Million $ United States 11,667,515 Japan 4,623,398 Germany 2,714,418 United Kingdom 2,140,898 France 2,002,582 China 1,981,000 Italy 1,672,302 Spain 991,442 Canada 929,764 India 691,876 Regards, OW
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