Quote:
Originally Posted by AlexN
Caution and concern for the current economic crisis is what caused the economic crisis in the first place... Money does not go up and down in value unless people do exactly what you're saying, get cautious and stop spending. This is a general flow that we see in the market.. people get spend happy, they spend and spend and spend, interest rates go up, and up and up then all of a sudden, everyone craps their pants, stops spending, and the economy freezes... if they hold out long enough, the slowed economy turns to a recession, if they hold out longer, you get yourself GEC, even longer and look out its the modern day depression... Spending is my "Global Economic Crisis Buster!" I figure, if everyone stops being cautious and flooded the market with cash, wouldn't this recession turn into an economic boom? Maybe im just a dumb 24 year old.. what would I know. But my way of seeing it is that if I can afford to make the repayments, there is nothing wrong with borrowing money to do something that I love doing.. Especially if im going to get into debt anyway to buy this property... Then I figure a little more debt for a lot more enjoyment out of my money is a good thing.. Granted, I wouldnt go doing it if I couldn't afford to service the debt.
And, for what its worth, Credit cards will be the downfall of Gen Y... They love their credit cards and use them for everything from petrol to a packet of cigarettes, car rego to televisions. This, is the type of debt i steer well clear of. I pay all my bills, I buy all my food, and pay all my general living expenses out of my savings... I reserve borrowing money for things like a good reliable car, which one needs to get to work and get paid, and for a home, complete with observatory..
I think I've said what I have to say.. Whether you do what I do or not is completely your decision, I choose my ways you choose yours.. Its the way of the world, everyone's different, I'm happy with my choices, if you're happy with yours, then we are all happy and thats the end of that.
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I just really hope that your situation does not change drastically and that everything keeps going the way you want. But I have to be honest it was not caution that caused the GEC it was that too many risks were taken how else can you explain all the huge companies that were supposedly to big to fail collapsed and the tax payers had to bail them out in America this is where it came from when I say cautious I don't mean not spending but Sub Prime loans and dodgy dealing were behind the GEC not cautious spending. A friend of mine who was trading shares kept telling me that it was going to just keep going up up up and for the last 5 years I had been warning him about what was to come now he is always complaining about how much money he has lost. I am not a real expert on things economic but I believe that this was a obvious outcome of the way things have been going. Any way I wish all the best for you.