Only those without debt will survive this longlasting recession?

[Misthos]

A source of steady, reliable income will be the only thing that matters.

What'sthe difference between a debt free, unemployed person and someone that is up to their eyeballs in debt, but has a reliable source of income?

Who would you rather be?

 

[Kassz007]

Quote from TrueRange:

Especially during periods of high inflation.

Good point. Unfortunately we aren't in a period of high inflation.

 

[lrm21]

the longer the recession last the more debts will be pursued.

Its a feeding frenzy and we see it know with CC companies raising fees and squeezing their customers, note holders refusing to negotiate with good payers before they run into trouble.

Inevitably everyone will just walk away from debt collapsing the pyramid.

This will result in more aggressive actions and regulations.

Debt and taxes go hand and head.

Just as the government is getting more aggressive for getting their money.

debtors prison is around the corner

 

[Dr. Zhivodka]

Yes, true. In periods of high inflation one wants to be in hock up to the eyeballs.

I was simply referring to more of an IRR thing. Debt is not necessarily a bad thing in any economic environment was my basic point.

Quote from TrueRange:

Especially during periods of high inflation.

 

[blackjack007]

mithos' reply is the only smart one here.

which is better:

1. $0 debt, $50k/ year income

2. $1mm debt, $400k/year income, $4m assets?

financially savvy people know how to utilize debt to make money. the rest don't know how to do that so they avoid debt.

 

[syswizard]

Quote from R. Raskolnikov:

Nah, they will get shot and killed by the masses who's debt and despair has driven them to total disregard for civilized society.

Everyone is essentially fucked, even the responsible.

Exactly. Just wait 6 more months...when the Dow is at 4000. Wow, much more pain to come. Roving bands of homeless, jobless, and hungry people.

 

[syswizard]

Quote from Kassz007:

Good point. Unfortunately we aren't in a period of high inflation.

Super-deflation coming. THEN, hyper-inflation.
Timing is just a wee bit important here.
Get it wrong, and you'll lose everything.

 

[R. Raskolnikov]

6 months is too soon, watch 2-3 years from now. We will be living in a world that many of us (in the US) have never ever seen. It will be surreal. But the bullets will still kill so don't linger in a state of disbelief for too long :eek:

Quote from syswizard:

Exactly. Just wait 6 more months...when the Dow is at 4000. Wow, much more pain to come. Roving bands of homeless, jobless, and hungry people.

 

[milktruck]

If we have roving bands of homeless the dow will be at 50,000. The govt will find the only solution to homelessness is higher equity prices.

 

[Dr. Zhivodka]

Super then hyper... awesome.

OMG I loving this. Trading opportunities in abundance. Viva America!!

Quote from syswizard:

Super-deflation coming. THEN, hyper-inflation.
Timing is just a wee bit important here.
Get it wrong, and you'll lose everything.