Originally Posted by Bibba1956

TY rjjr for not slamming me for "bragging" as it was more a teaching point than anything and is something that is within the reach of anyone who is willing to sacrifice the borrowed gains of today for the paid for gains of tomorrow. Unfortunately many do not listen and I applaud you for taking the steps to not being a "slave".

For anyone who thinks things will get better as they have in the past I have one thing to say to them: Look at Japan. 20 years ago Japan faced the same crisis the US is facing with the boom and crash in the housing market and the stock market. 20 years later the stock market, housing prices and overall consumer prices have not gone up at all. If you bought a house in Japan at the peak of the housing boom you still owe 50% more than what you paid for it and prices overall across the board have not gone up. This is what is in store for the US.

The only difference between Japan and the US is that Japan is a nation of savers who save more than 10% of their income. The US saves 0% or less and, although it has gone up slightly recently in the US it will not match Japan's savings rate due to the massive debt of the US as a whole. Therefore Japan's economy was able to survive these past 20 years. I fear the US will not in the next 20 years.

Also, Japan still has a significant manufacturing base whereas the US is losing manufacturing on a daily basis. The US has only 14% of it's manufacturing base as compared to the 1960's whereas Japan still has about 50%.

Therefore, the key to survival in the US these next few years is to be out of debt completely! However, looking at how our government is indebted to China to the tune of $500 million/week in interest payments and $2 billion per day in loans just so that we may survive, I cannot see the US surviving this crisis.

Just look at YRC and their survival pains to see what is in store for the US. It is a parallel course. As YRC goes, so will the US. Don't get caught up in it.

Get out of debt as fast as you can even if it means selling your home and cars and living in a smaller home and driving used cars. You and your family will be much better for it.

Originally Posted by mildew

Sounds like ya'all are doing well for yourselves just don't forget about your kids or grand kids. They may need to stay in school so they don't end up driving a truck for a living. My folks have been debt free all their lives.

Originally Posted by mildew

Sounds like ya'all are doing well for yourselves just don't forget about your kids or grand kids. They may need to stay in school so they don't end up driving a truck for a living. My folks have been debt free all their lives.[/QUOTE

Paying cash and being debt free is something our generation has gotten away from. I do believe that we are on trend to do the same again,I talk to alot of younger folks that are paying off credit cards and cutting them up and paying cash to get away from living check to check.
If you go to borrow money from a bank, you are paying 8 percent plus for interest,yet when you put money into the bank in a savings account thet give you a half percent interest, What's wrong with this picture ??