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Innocent Victims of the Credit Crisis

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November 26, 2008 – Comments (8)

is this the best reporters can do?

Among those benefiting from lower rates was James Ramsey of Aurora, IL., whose mortgage rate, currently 5.625%, was slated to increase by as much as a percentage point in January. On Tuesday, Mr. Ramsey locked in a 5.5% rate on his $180,000 mortgage. The refinance "is going to let me pay off a couple of credit cards really quick," he said.

The Davises, who bought their home in July, needed help. They haven't been able to sell their old house yet and so are renting it out, but for less than their mortgage payments. All told, housing costs are eating up nearly half of their after-tax income, Mr. Davis says. The couple has stopped eating out and putting money into retirement accounts; they have also taken on second jobs to keep afloat.

Has any politician in this bailout had the guts/smarts/foresight to suggest that what we need more than anything in this country is personal finance education? If you put yourself in the position of going bankrupt when probably events occur, you are not a victim of anything but your own ignorance. Maybe, just maybe, people need a dose of smarts, responsibility, and restraint to go along with their free, taxpayer-funded money. Right now, all we're training people to do is keep making the same stupid bets, then wait for Mr. Gobnmint to pick their neighbors pocket and hand the proceeds to them.

8 Comments – Post Your Own

#1) On November 26, 2008 at 9:16 AM, Gemini846 (50.69) wrote:

Who would be qualified to hand out some of this education? You certainly wont get it in our socialistic public schools.

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#2) On November 26, 2008 at 9:53 AM, TMFBent (99.81) wrote:

Actually, you will in some schools. My wife's school has a teacher who explains the basics to the kids. It's a start.

And as for socialism in public schools, come on. Lately, schools have nothing on Wall Street. As the spouse of a teacher who works 8 hour days and 3 hour nights grading,etc. to help teach the next generation, you're not going to get a lot of sympathy from me on the "schools are socialist" charge.

Sj

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#3) On November 26, 2008 at 10:54 AM, semper77 (32.43) wrote:

I agree with you, TMFBent. This was a silly post.

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#4) On November 26, 2008 at 12:49 PM, TDRH (99.65) wrote:

I think a streetwise 10 year old could understand that you do not loan your money to someone who cannot pay you back.   Parents are the best educators concerning personal finance.

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#5) On November 26, 2008 at 1:07 PM, starbucks4ever (97.73) wrote:

My last post explained why fin-ed lessons is a hypocritical idea that will set people up for failure.

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#6) On November 26, 2008 at 2:22 PM, russiangambit (29.24) wrote:

> Who would be qualified to hand out some of this education? You certainly wont get it in our socialistic public schools.

What defines our public schools as socialistic? The only thing that I noticed about them so far is their bad quality and too much spending on unrelated things like buildings and sports. I will take socialistic european schools over ours any day.

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#7) On November 26, 2008 at 2:25 PM, russiangambit (29.24) wrote:

I also agree that no amount of financial education can subsitute the common sense and the ability to deal with reality as an adult. Most people will prefer an easy way out (such as credit) vs. dealing with the reality (not having enough money).

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#8) On November 26, 2008 at 10:28 PM, degaston (99.57) wrote:

Personal finance skills is mostly about integrity. Some of it is luck. But most people who are in good financial shape are those who plan well to spend less than they earn and plan well to manage risk -vs- opportunity in their investments.  

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