Going For Broke! (choices, choice, service)

[michel]

http://www.fool.co.uk/news/get-out-o...oowftxt0010011


Although the UK economy appears to be in rude health, there are signs that things aren't quite so rosy below the surface.
For example, take the latest insolvency figures, which were released this morning. According to the Insolvency Service, over 30,000 people in England & Wales became bankrupt or insolvent in the first quarter of 2007. In other words, more than 10,000 people a month are going bust, which is an all-time record.

See the above link for full statistics, etc..........

[RevOxley_501]

same thing is happening in amerika....stocks are up, but forclosures are WAYYYYY up.




and since when is Rude Health descriptive of something good? must be a british thing

[Terrywoodenpic]

Only when there is lots of money splashing about do people over stretch them selves.

They believe things will continue to get even better and bet on the future.

However markets and interest rates fluctuate. and those who are not prepared for it.

are swamped by their borrowings.

They go Broke.

This is not a fault or the system or governments, it is either over optimism or stupidity of those who over spend borrowed money. with out knowing and planning how they will make repayment under any foreseeable circumstance.

They are either poor business men or even worse consumers.

[michel]

Originally Posted by Terrywoodenpic

This is not a fault or the system or governments, it is either over optimism or stupidity of those who over spend borrowed money. with out knowing and planning how they will make repayment under any foreseeable circumstance.

They are either poor business men or even worse consumers
This is not a fault or the system or governments, it is either over optimism or stupidity of those who over spend borrowed money. with out knowing and planning how they will make repayment under any foreseeable circumstance.

They are either poor business men or even worse consumers.

Whilst you are, undeniably right, Margaret Thatcher implanted the "Anyone can become a businessman" "chip" in the minds of the English - add to that, and banks are delighted to over-lend to those who can least afford it, and I would therefore say that this is a "suckers+usurers" situation.

What is so sad is that schools are only just beginning to realise that part of the education system should include "What is money? Does it grow on trees".

[SoyLeche]

Personally, I think there should be 4 subjects that need to be required for all High School students everywhere:

1 - Logic
2 - Civics
3 - Economics
4 - Personal Finance

I especially think the 4th one I listed should be required. Every high school student should come out of school with at least a basic understanding of:

how interest works

how a mortgage works

what a credit score is and how their actions can affect it

what the options are for retirement savings and the pros and cons of the different choices

etc.

[RevOxley_501]

Originally Posted by SoyLeche

Personally, I think there should be 4 subjects that need to be required for all High School students everywhere:

1 - Logic
2 - Civics
3 - Economics
4 - Personal Finance


I especially think the 4th one I listed should be required. Every high school student should come out of school with at least a basic understanding of:

how interest works

how a mortgage works

what a credit score is and how their actions can affect it

what the options are for retirement savings and the pros and cons of the different choices

etc.

i agree 2000%



and have said it many times

[The Seeker]

Personally, I think there should be 4 subjects that need to be required for all High School students everywhere:

1 - Logic
2 - Civics
3 - Economics
4 - Personal Finance

I especially think the 4th one I listed should be required. Every high school student should come out of school with at least a basic understanding of:how interest works

how a mortgage works

what a credit score is and how their actions can affect it

what the options are for retirement savings and the pros and cons of the different choices

etc.

I agree 3000%. We just talked about this in one of my college courses the other day. Most people know very little about basic economics and finance. Banks and investment companies take advantage of people's ignorance which is why you have so many foreclosures and situations like Enron where people lose everything because they didn't invest wisely. This is also why privatizing Social Security is such a bad idea. The government focuses so much on kids' reading and math scores but ignores teaching the fundamental things necessary to function in this society. It's just mind-boggling.

[!Fluffy!]

Originally Posted by RevOxley_501

same thing is happening in amerika....stocks are up, but forclosures are WAYYYYY up.

sorry to disagree but the economy is very healthy, stocks are up and unemployment is virtually nonexistent...the foreclosures went up as predicted -- because 5 years ago there were a lot of people with bad credit/inadequate down payments, who chose to get adjustable rate mortgages or 5 yr balloon payments instead of improving their credit score and saving for a good down payment to get proper financing. They gambled, they lost.

People should NEVER get an ARM or high interest loans with balloon payments unless they are sure they can and will refinance or sell before getting caught with their pants down.