(no subject)

[cactuswatcher]

A very recent post by ann1962 makes me remember how easy it is to say things without thinking.

Like the news people on TV last night getting upset that some tax payers in the US might not spend their promised rebate at the store to help the economy. They might pay bills instead, shudder. Where do these people think the money paid on bills goes, Uncle Scrooge's money bin? A black hole? Much better to have people stay on the edge of bankruptcy and have a nice new $600 set of golf clubs to enjoy it with, right? Or much better to use the $600 dollars as a down payment on a gigantic HDTV made in China cause that will help the US economy more directly!

Comments

[ninerva.livejournal.com]

*Slaps head*

It drives me mad too. I know we are a consumer society, but once the roof is secure over my head, then I'll worry about the retailers profits. After all where would I put all the stuff I want to buy if I default.

And don't even get me started on credit... ;-)

[cactuswatcher.livejournal.com]

It's risky to get me started on the subject of credit as well. LOL

[mamculuna.livejournal.com]

I'm convinced that a lot of people will look at the idea of the money coming in May, and put yet more stuff on their almost-maxed out cards, and then when the money does come, will buy other stuff and leave the big balance still on the cards.

Just because I see children and students handling their $$ a little differently from the way I wish they would...

[cactuswatcher.livejournal.com]

That's pretty much the idea that a lot of financial whizes are hoping for. Have people spend more than the rebate in hopes they'll keep their jobs long enough to pay it off. More than a bit risky for many.

[mamculuna.livejournal.com]

But I thought the huge credit card balances were creating some kind of problem? And they want to make them even huger?

[cactuswatcher.livejournal.com]

You're right.

Any number of financial institutions are in trouble because they bet that the publics' financial limits were just a bit higher than they were in reality, especially in the real estate market. Many are hoping more spending will keep the wheels turning. Maybe this time it will. But if it leads to higher prices and more debt in the system, as you've guessed, it just postpones the inevitable crash.