xsocal land merchant_IHB
New member
This article has some interesting time lines for consumer <a href="http://www.signonsandiego.com/uniontrib/20081128/news_1n28credit.html">debt leading up to the current events.</a>
Enjoy!
Enjoy!
Interesting short term history of consumer debt.
- Thread starter xsocal land merchant_IHB
- Start date
graphrix_IHB
New member
<blockquote><em>Matt Sauer, a young, single mortgage broker, planned to get rich quick after graduating from college. By age 28, he owned properties in Pacific Beach, Las Vegas and Florida.
Matt Sauer, 30, led a Bible study group last week. The mortgage broker postponed plans to quit his job to become a missionary after finding himself deep in debt.
Today, the houses are underwater ? meaning mortgage debt exceeds market value ? and Sauer's dreams of quitting his job to become a Christian missionary are on hold because of his financial obligations.
To save money, Sauer, now 30, cut back on dining out and moved in with three roommates. He also has re-evaluated his views on debt.
?Like the Bible says: 'The borrower is the servant to the lender,' ? Sauer said. ?I am enslaved.? </em></blockquote>
I am glad I didn't drink the Kool-Aid like some did back then, otherwise I might be in similar shoes as this guy. At least he is not walking away from his excesses, like so many other people I know are doing, but he accepts the enslavement and plans on paying his debt off.
<blockquote><em>Shaw limits her driving, shops only at discount stores and hasn't used a credit card in 11 months.
?Sometimes I get a little terrified,? she said. ?I wonder, 'What's going to happen?' My job let a few people go. I hear it all around me.?
She has whittled her debt to $6,000 and won't stop until it's gone.
?It's the No. 1 goal right now,? Shaw said, ?and definitely a lesson I will teach to my kids and anybody who will listen.?
And when she's out of debt? ?I'm going to feel like a million bucks,? Shaw said. </em></blockquote>
Isn't this what IR did, and isn't this how he felt when he became debt free?
<blockquote>
<em>Even in the 1990s, when mailboxes were stuffed with credit card applications and catalogs, the malls were packed and houses and cars were growing bigger, the <strong>personal savings rate was still 7 percent to 8 percent</strong>.
Then came easy credit and the housing bubble. Homeowners watched prices shoot up, and that made some feel as if saving was no longer as crucial. During the run-up in home prices, it was easy to find homeowners who bragged that they made more on their house than at their job.
Mark Miller, a San Diego bankruptcy lawyer, is seeing the fallout. His offices are buzzing with young couples, many facing foreclosure and some owing as much as $200,000 on credit cards.
<strong>
?We have finally gotten over the concept that debt equals wealth,?</strong> Miller said. ?I'd get guys coming in with their arms crossed, saying, 'I'm only here because my wife dragged me in.' <strong>Now I am seeing capitulation.</strong>?
That's the conclusion Dan Alger, 31, has reached.
Alger and his wife bought a one-bedroom condo in Mission Valley as newlyweds. A few years later, they turned it into a rental property and bought a three-bedroom condo nearby, where they planned to raise their two young children.
Money was tight on his $32-an-hour job as a sheet metal worker, especially after his wife quit working as an aesthetician and went back to nursing school.
It didn't take long for their financial house of cards to collapse. When their interest rates adjusted, the Algers used a home equity line of credit to pay their property taxes.
This spring, Dan Alger lost his job. The Algers defaulted on both mortgages in a matter of months.
Now Alger and his family are living in an apartment in Clairemont. He's in no rush to buy another house, even if he could get a loan. Worrying was ruining his marriage, making him cross with his children and causing him to lose sleep.
After several months of unemployment, Alger was relieved to find another job making about the same as he was before.
Alger said he was determined to put any spare money in a savings account. He used to want to leave a house to his children. ?Now maybe I'll leave them a little bit of money,? Alger said, ?and a warning.?</em></blockquote>
It looks like we are starting to see capitulation in San Diego, and people starting to hate or avoid RE as a whole. The bottom must be nearing in SD.
We are also seeing BK attorneys saying what IR has been saying all along, "Debt is not wealth!"
Matt Sauer, 30, led a Bible study group last week. The mortgage broker postponed plans to quit his job to become a missionary after finding himself deep in debt.
Today, the houses are underwater ? meaning mortgage debt exceeds market value ? and Sauer's dreams of quitting his job to become a Christian missionary are on hold because of his financial obligations.
To save money, Sauer, now 30, cut back on dining out and moved in with three roommates. He also has re-evaluated his views on debt.
?Like the Bible says: 'The borrower is the servant to the lender,' ? Sauer said. ?I am enslaved.? </em></blockquote>
I am glad I didn't drink the Kool-Aid like some did back then, otherwise I might be in similar shoes as this guy. At least he is not walking away from his excesses, like so many other people I know are doing, but he accepts the enslavement and plans on paying his debt off.
<blockquote><em>Shaw limits her driving, shops only at discount stores and hasn't used a credit card in 11 months.
?Sometimes I get a little terrified,? she said. ?I wonder, 'What's going to happen?' My job let a few people go. I hear it all around me.?
She has whittled her debt to $6,000 and won't stop until it's gone.
?It's the No. 1 goal right now,? Shaw said, ?and definitely a lesson I will teach to my kids and anybody who will listen.?
And when she's out of debt? ?I'm going to feel like a million bucks,? Shaw said. </em></blockquote>
Isn't this what IR did, and isn't this how he felt when he became debt free?
<blockquote>
<em>Even in the 1990s, when mailboxes were stuffed with credit card applications and catalogs, the malls were packed and houses and cars were growing bigger, the <strong>personal savings rate was still 7 percent to 8 percent</strong>.
Then came easy credit and the housing bubble. Homeowners watched prices shoot up, and that made some feel as if saving was no longer as crucial. During the run-up in home prices, it was easy to find homeowners who bragged that they made more on their house than at their job.
Mark Miller, a San Diego bankruptcy lawyer, is seeing the fallout. His offices are buzzing with young couples, many facing foreclosure and some owing as much as $200,000 on credit cards.
<strong>
?We have finally gotten over the concept that debt equals wealth,?</strong> Miller said. ?I'd get guys coming in with their arms crossed, saying, 'I'm only here because my wife dragged me in.' <strong>Now I am seeing capitulation.</strong>?
That's the conclusion Dan Alger, 31, has reached.
Alger and his wife bought a one-bedroom condo in Mission Valley as newlyweds. A few years later, they turned it into a rental property and bought a three-bedroom condo nearby, where they planned to raise their two young children.
Money was tight on his $32-an-hour job as a sheet metal worker, especially after his wife quit working as an aesthetician and went back to nursing school.
It didn't take long for their financial house of cards to collapse. When their interest rates adjusted, the Algers used a home equity line of credit to pay their property taxes.
This spring, Dan Alger lost his job. The Algers defaulted on both mortgages in a matter of months.
Now Alger and his family are living in an apartment in Clairemont. He's in no rush to buy another house, even if he could get a loan. Worrying was ruining his marriage, making him cross with his children and causing him to lose sleep.
After several months of unemployment, Alger was relieved to find another job making about the same as he was before.
Alger said he was determined to put any spare money in a savings account. He used to want to leave a house to his children. ?Now maybe I'll leave them a little bit of money,? Alger said, ?and a warning.?</em></blockquote>
It looks like we are starting to see capitulation in San Diego, and people starting to hate or avoid RE as a whole. The bottom must be nearing in SD.
We are also seeing BK attorneys saying what IR has been saying all along, "Debt is not wealth!"