I got my last hair cut today, before leaving for Florida Sunday. The barber and I were having a nice conversation about the economy and how it got this bad and we agreed that there is plenty of blame to go around. She even stated that her spending habits contributed to the problem.

I was pointing out the generational differences in home buying and how the younger generations got themselves into trouble buy buying over their heads, with low or no money down mortgages at rates that they could not guarantee they could pay when their ARMs went up. We older people (60 in December), our parents and grandparents, needed 10-20% down and a good job and credit to get a mortgage and never would, or could, get a loan we couldn't afford.

The shop owner jumped in in a huff saying "I suppose the poor people are to blame"? I repeated there was plenty of blame to go around and that nobody held a gun to any ones head to take out a mortgage. He jumped in with "it's the banks fault and the governments fault", as if either made any one take the mortgages.

I told him I felt that the government (us), with good intentions, in an effort to make loans available to people that would not ordinarily qualify, changed the rules to have lending institutions give loans they would not give otherwise. The lending institutes saw they could make money on these loans, above what ordinary loans return, and promoted them to the benefit of themselves.

The rules change was not specifically targeted to people with low credit ratings and everyone of every income group jumped on the bandwagon. Now the well intended manipulation of the government, into rigging the system for one group of people, has opened a Pandora's Box of foolish borrowing.

Therefore ALL are to blame. The government for trying to make the banking system "fair", the banks for giving up their sound lending practices for sheer profit and the borrowers of ALL income levels, that were foolish enough to sign for loans they couldn't pay.

The owner clammed up, the barber felt uncomfortable for siding with me and I stuck to my guns.

But, I feel that the government started the mess buy trying to interfere with the free market system. To those of you with a banking background, should the government be trying to play with the free market system in order to change the benifits of ANY group of people?

I love to simplify everything..... K.I.S.S. is one of my favorite mottos... Keep It Simple Stupid - and to me it means:

If you can't afford it, don't buy it ! People should take personal responsibility for their own actions.

Just my ever so humble opinion.

Read the Crystal Ball thread... this is far from simple.

We can theorize all day and all night and forever about economic policy. Shoulda. Coulda. Who? What? When? Where? Why? And what will all that theory get us?

I wonder how many people realize how few people teach their kids anything these days about how to handle money. I wonder how many people realize how few parents know anything about how to handle money. And I am talking about every walk of life. It's across the board. Yesterday, I heard a young mom at Macy's say that her kids were driving her nuts so she was out for a day of "retail therapy." Aaaauuuuughhhhh!!!!!! Pass that message along to those kids.

That stimulus package sure sent the wrong message. What was that? The Walmart bailout? Go to the mall and buy a bunch of from China because your government said you should and it will make you feel so much better about your government. Huh?????

I really believe there should be a place in the curriculum of public schools for financial education for every kid. And it should not be an unfunded mandate as are so many that the government decides to dump on the schools. Such a program would not be that expensive to fund.

And it should start in elementary school and go through secondary school and every kid should have a chance to learn about how to handle money. I know it is in some schools in a small way, but it's not out there for real. It needs to be in every school curriculum, for every child. Then, and only then, will we have a true chance at "No Child Left Behind."

Too many parents are not teaching this stuff to their kids. Too many parents don't get it themselves. It's not going to happen at home. Yeah, I know it should, but get over it, get real. It's not going to happen in most homes. Schools need to do it. And they need to be given the funding to do so. Just think about the ROI. The return on investment for even just one generation of kids would be astounding and wonderful for all of us.

Boomer

Oh my! I think that was a rant. Goodnight.

Great "rant" Boomer...

While reading your "rant" my thoughts turned the clock back to grammar school, fifth grade when we had a lesson in finances. Yes, every week Mrs. Beers from the local bank would come to our school to collect .25 cents from each of us to deposit in our very own savings account. We had a savings book and that was such fun to see the savings grow!! As I recall, it was a Christmas Club Savings Account and we all bought little holiday gifts with our savings.

Such fond memories......b

Barb..........What a priceless thing to share. My grandparents took me to the bank every week where I deposited some small amount and often the bank president would shake my hand.....I was a little, little girl.

People back then would often greet each other with a smile and handshake and the phrase..."Whats the good word?". The answer was always........"Save your money". Maybe this bad time won't get as bad as the depression that happened the decade before I was born, but perhaps it will teach young people to not spend what they don't have.

History keeps cycling doesn't it?

Originally Posted by Guest

Barb..........What a priceless thing to share. My grandparents took me to the bank every week where I deposited some small amount and often the bank president would shake my hand.....I was a little, little girl.

People back then would often greet each other with a smile and handshake and the phrase..."Whats the good word?". The answer was always........"Save your money". Maybe this bad time won't get as bad as the depression that happened the decade before I was born, but perhaps it will teach young people to not spend what they don't have.

History keeps cycling doesn't it?

Remember Savings Stamps and small-value Savings Bonds? They put thrift into the psyche early in life.

When my spouse and I moved to DC 5 years ago we found ourselves pre-qualified for a mortgage of $1.5Million! We were shocked, but did not fall into the trap of accepting a loan anywhere near that limit. Being able to add, subtract, multiply, divide and think worked together to show us why it was very risky and not a good deal long-term. Yet, how many others fell into that sugar-trap?

Expecting something for nothing or next-to-nothing has always been the root of economic problems. The only thing that changes is the magnitude of the greed.

OK, so we all knew what we were doing.

So now what?

Last night I wrote a rant in this thread.

I am telling you this morning, rant or not, I know I am right.

Financial education must be put into our schools. Really put into our schools. Not just played around with in some classes here and there. It needs to be there just like the 3 R's. Our future depends on it. And like I said last night -- the ROI would be phenomenal. It's our best chance to make a dent in the money ignorance and irresponsibility that just seem to be accepted as going with the territory of American life now -- on all levels.

If you wonder what I am babbling about this morning, see last night's rant here. I usually don't get too self-righteous about stuff. I figure what's the point? But on this one, oh yeah. I am right. I know I'm right. I am absolutely passionate about how right I am. I just know it. I just know it. I just know it.

Whew!

Seeya later.

Boomer

Originally Posted by Boomer

OK, so we all knew what we were doing.

So now what?

Last night I wrote a rant in this thread.

I am telling you this morning, rant or not, I know I am right.

Financial education must be put into our schools. Really put into our schools. Not just played around with in some classes here and there. It needs to be there just like the 3 R's. Our future depends on it. And like I said last night -- the ROI would be phenomenal. It's our best chance to make a dent in the money ignorance and irresponsibility that just seems to be accepted as going with the territory of American life now -- on all levels.

If you wonder what I am babbling about this morning, see last night's rant here. I usually don't get too self-righteous about stuff. I figure what's the point? But on this one, oh yeah. I am right. I know I'm right. I am absolutely passionate about how right I am. I just know it. I just know it. I just know it.

Whew!

Seeya later.

Boomer

Public education can be a thread (or board) all its own.

There was a time it worked, and folks learned a lot.

Agree with the need for revised curricula, and the inclusion of basic personal finances as a topic makes sense. However, just plugging it into a curriculum, especially where kids can't add without a calculator or read the content of a bank statement may not cut it.

It's also doesn't say much when government (in this case, public school systems) are expected to take over another life element of what should occur within the family circle.

At the rate we are going, as it is in Communist countries, kids may as well be just turned over to the state every morning as soon as they can walk, be "taught" all of life's issues (not just the 3Rs and related subjects) by government employees according to a state-approved script, kept in communal centers before-and-after school where they are temporarily parented until the facility closes, and then returned to their legal parent(s) until the cycle starts again the next day - with little to no relationship time actually occuring between the parent(s) and child(ren). OH, EXCUSE ME - that IS what is going on now!

Boomer, Steve, and the rest.......

You are so right. I know people who just are so bad with their money...then go plead bankruptcy and shaft all those they owe.

I've never paid a penny interest on credit cards, never bounced a check, and figured out for myself what we could afford for a mortgage BEFORE the bank told us anything.

"What do you mean, there's no money in the account...I still have checks!"

Frank D.

Originally Posted by Boomer

We can theorize all day and all night and forever about economic policy. Shoulda. Coulda. Who? What? When? Where? Why? And what will all that theory get us?

I wonder how many people realize how few people teach their kids anything these days about how to handle money. I wonder how many people realize how few parents know anything about how to handle money. And I am talking about every walk of life. It's across the board. Yesterday, I heard a young mom at Macy's say that her kids were driving her nuts so she was out for a day of "retail therapy." Aaaauuuuughhhhh!!!!!! Pass that message along to those kids.

That stimulus package sure sent the wrong message. What was that? The Walmart bailout? Go to the mall and buy a bunch of from China because your government said you should and it will make you feel so much better about your government. Huh?????

I really believe there should be a place in the curriculum of public schools for financial education for every kid. And it should not be an unfunded mandate as are so many that the government decides to dump on the schools. Such a program would not be that expensive to fund.

And it should start in elementary school and go through secondary school and every kid should have a chance to learn about how to handle money. I know it is in some schools in a small way, but it's not out there for real. It needs to be in every school curriculum, for every child. Then, and only then, will we have a true chance at "No Child Left Behind."

Too many parents are not teaching this stuff to their kids. Too many parents don't get it themselves. It's not going to happen at home. Yeah, I know it should, but get over it, get real. It's not going to happen in most homes. Schools need to do it. And they need to be given the funding to do so. Just think about the ROI. The return on investment for even just one generation of kids would be astounding and wonderful for all of us.

Boomer

Oh my! I think that was a rant. Goodnight.

Love the part about teaching money management to our kids! That is exactly what I've been saying to family and friends for quite some time.

I remember as a child going to the shoe store with a small cardboard payment book and putting 25 cents on our account and licking S&H green stamps to put into a book to purchase something at the S&H store.

My brothers and I had little growing up because the family had little to spare. Nothing was bought on credit. We were taught at home that if we wanted something the way to get is was to work and save for it.

Mrs. Gnu and I have 4 boys between us and only one learned the lesson that we tried to instill in them. What went wrong? I guess peer pressure, bad examples from friends and endless marketing in print, radio, and TV. I guess we led them to water and they still didn't drink?

We haven't quit trying to turn them around and we think that two more might have seen the light, after being in finance trouble that is.