In March, 2005 I posted an excerpt from the article “The Debt-Peonage Society”. The article written by Paul Krugman for the NY Times addressed the Senate bill that stiffened US bankruptcy laws at a time when more and more consumers were facing layoffs and foreclosures.
After reading that post, a friend emailed me with the following comments:
“Most debt except in emergencies is voluntary. How are we doing about learning this lesson?”
And when recently asked about the foreclosure rates and credit crisis caused by sub-prime mortgage lenders, President George Bush blamed borrowers for not understanding the documents that they had signed.
So let’s see what are we doing about learning this lesson?
Is this only a problem in the US?
Are you “A Revolver”?
Do you believe that having a good credit score indicates that you are a “financial success”?
Do you think that having a platinum credit card means that you are affluent?
Do you believe that the banks are happier when you save or when you borrow?
Do you think that your government really wants you to get out of debt?
Do you believe that your government has a tangible commodity ( such as gold, etc.) to back up the currency in circulation?
What is one of the fastest growing businesses on Wall Street?
Before you answer watch the following videos. What you see and hear may change everything you thought that you knew about your finances.
The Money Trap - How the banks lure you into debt (BBC Panorama 2006)
A BBC broadcast “Panorama” shares revelations about the lending practices of the high street banks. An insider reveals an industry driven by ambitious targets to sell borrowing to customers.
Elizabeth Warren discusses James Scurlock movie on the American consumer debt crisis "Maxed Out" on NightLine
Money As Debt
Paul Grignon's 47-minute animated presentation of "Money as Debt" tells in very simple and effective graphic terms what money is and how ii is being created. This should be mandatory viewing in every junior high school economics class.
Around The Kitchen Table - Debt
Drowning In Debt & Maxed Out
50 Good Things About Being Out Of Debt