Thanks for sending the article though. It was quite informative. I also nice to find out that what I thought was my paranoia, was actually common sence and I'm not the only one with these problems
it's more than common sense, it's kinda disturbing. although in a way it also kind-of makes sense - you want to get ahead in life? it costs money to get smarter. but i guess some banks are making money on this on the side.
Contrast with the worldmhmeln_57March 18 2004, 07:29:29 UTC
The article compares an American Kid to a Japanese young person. the difference between the US and the rest of the world is that we have everything on a more inflated level. we charge more for all the services, but the money stays in the system. We have the most expensive education system, but we also have the highest salaries in the world. Europeans can't afford to have big cars, big houses, etc. Neither can the Japanese. While it is true that Americans live in debt, that debt is not at all bad. i am happy with my debt. my goal is to die with as much debt as possible. i wish i could prolong my student loans (i think i have a lot more than an average American Kid) till much later in life
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Re: Contrast with the worlddalonaMarch 18 2004, 12:04:42 UTC
About lawyers and salary: if average loan is around 100K and salary is 125K than they are in the same situation as the rest of the student. Having average loan 40K(masters) I need salary at least 90K to pay off the loan in 5 years. I'm not that optimistic about salary which I will get (or economy and market--whatever you call it), so I hope to pay off my loans in 10 years. By that time, according to the article, following american dream, I should already have a stable nice job, house, car--meaning enough money to buy all that. NOt just get to the line of flat broke. For me that is scary.
Re: Contrast with the worldmhmeln_57March 18 2004, 13:12:49 UTC
why is the point of 0 loans considered to be the "normal" point? let's assume that we spend our entire lives in debt. Therefore, "normal" position is $xxx,xxx in debt. From that point on, the purpose is not to get out of debt, but to break even and sometimes have surplus.
This, on a big scale, is how all of American (and world) industries work. GM is barely breaking even with all the loans that the company has (in the form of bonds). the only well-known company without public debt is Microsoft, and that's an anomaly.
So if we take as "normal" that we are in debt, there is no harm in having student loans, car loans, mortgage and other loans to your name. As long as you can make enough per period A not to default on these loans, you should not worry about the loans. and if your budget is getting too tight with the loans, spread them over a longer period.
Nobody expects GM to pay off all the debts. as soon as they do (buy back bonds of one issue), they issue new debt. For many, many years ahead. What's wrong with that picture, again?
Re: Contrast with the worldiluxaMarch 18 2004, 14:00:40 UTC
well, that's kinda how it is, right? what you're pointing out is how large businesses work. running those businesses is always a race to keep just enough cash coming in to cover the loans. and that's how lots and lots of people live, sure
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This, on a big scale, is how all of American (and world) industries work. GM is barely breaking even with all the loans that the company has (in the form of bonds). the only well-known company without public debt is Microsoft, and that's an anomaly.
So if we take as "normal" that we are in debt, there is no harm in having student loans, car loans, mortgage and other loans to your name. As long as you can make enough per period A not to default on these loans, you should not worry about the loans. and if your budget is getting too tight with the loans, spread them over a longer period.
Nobody expects GM to pay off all the debts. as soon as they do (buy back bonds of one issue), they issue new debt. For many, many years ahead. What's wrong with that picture, again?
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