Gee, isn't the topic called "Are Women Ready for Real Portfolios?" I guess I'd better go back and figure out where the topic changed to Government Debt and Deficits.
Are Women Ready for Real Portfolios?
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Probably something to do with their ability to run up deficits and debt. :lol::lol::lol:
I see. I don'
t see much of a problem with a deficit when you can't plan for things such as this economic mess. I guess they are bound to happen sometimes. But, when you are wasting billions of dollars on interest because of the debt, espoecially when you don't need to, it's just dumb.
Unless your family still keeps spending $60K a year.
If we had no debt to begin with , we wouldn't be wasting bugger all on interest. That would be one less thing to add to the deficit every year so if one had to run a deficit, there'd be less deficit. It's freaking stupid to say debt doesn't matter and deficit does when your interest on debt is more than the deficit.
So what happens when you are spending more on accumulated interest than the capital was? That kind of makes the deficit irrelevant, doesn't it? lmao Whatta buffoon.
From what you say I get the impression you dismiss Gov't debt as not a bad thing, and you compare it to such things as a mortgage on a house- DEAD WRONG. If I have a mortgage on my house I can sell the house and pay off the debt. Gov't debt isn't always on stuff that can be bought and sold - it may be for a highway or bridge or canal, or even a berm, - who in their right mind is going to buy these things off the Gov't? The only way Gov't debt is paid is through our noses.
I never said debt was a good thing, JLM. What I said is that deficit is the real problem, if there is no deficit, we can deal with the debt in several different ways. We could pay off the debt a bit very year and pay if off over several decades, or we can even grow into it (like the example I gave of the family whose income went from 50,000 $ to 150,000 $ per year).
Debt occurs as a result of the deficit. If deficit is not a good thing, it follows that debt is also not a good thing. What I am saying is that in the absence of deficit, debt is not as big a problem. It is the deficit that is the killer.
And sell your house, are you serious? You would sell the house you are living in only in the direst of circumstances. And there is no guarantee that you will get your money back by selling the house, especially when housing market has tanked, as it did in USA recently.
If you have a mortgage of 120,000 $ and the current value of your housing is 100,000 $ (as can happen when real estate market crashes), then selling your house puts you in the hole for 20,000 $, you have to raise 20,000 $ right away to pay off the loan. So selling the house is not always the answer. Especially that is your only means of abode, you would do that only if you are really desperate.
The situation you describe is right out of the book of (U.S.) sub prime nonsense, it would virtually never happen in Canada. I know, I just took out a modest mortgage on a house I have 60% equity in and enough mutual funds to back the mortgage and still the scrutiny and background checks I was put under was mind boggling. That is a good thing given what's happened with the whole financial situation world wide, so I can assure you the situation you describe is a one in a million. Sure there are dips in real estate values, but I defy you to find a time in the past 50 years where the value of a house was less than it was even five years previous.
Canadian Forums » Politics » Canadian Politics » Are Women Ready for Real Portfolios?
Pulling a switcheroo on me are you S.J.? AS you can see from the headings I've copied, everything about this thread is Canadian, you and I are Canadians we are discussing Canadian politics and the Canadian mortgage system- so why can't you just debate the point within those confines?