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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: John Vosilla who wrote (79133)	2/20/2007 12:42:28 PM
From: benwood	Read Replies (1) \| Respond to of 110194

And 30 years ago, I never heard of anyone in high school with a credit card, and rarely even in college. My brother's card had a $500 limit. My college freshman has been bombarded with card offers for 4 years now, and now that he's in college and away from prying eyes, the volume of mail has intensified. And whenever he buys his books at the University Bookstore, card applications are slipped in. In short, the credit card industry (and the credit industry in general) has perfected the art of grooming their customer base for a lifetime of servitude and has applied that knowledge skillfully for the past 20 years, and their revenues show that they are being handsomely rewarded for their new techniques. No payments until 2009. or 2010. or 2011. Negative amortization loans. Easy cash advances with checks sent in the mail. 100% house financing. 5-, 6-, 7-, 10-year financing for autos. Stacked auto loans (upside-down on trade-in). Minimum payments that would require infinity years to pay off the principle. Universal default (aye, spring the trap of financial manacles!) Ever rising card limits. Liar loans. "Savings accounts" where you charge $395.44 and they set aside fifty-six cents to help you build up savings because they care about their customers and the importance of saving for one's future. You see, you aren't spending -- you are saving for the future! The hot tub and accessories are therefore simply part of the painful process of doing what it takes to build a nest egg. And constant messages on TV, newspapers, magazines, billboards that "You deserve it now!" "Let Visa work for you!" "What are you carrying?" Instant gratification! What you go in debt for is priceless (therefore, free!). And on and on. The solution I think is education, starting very young and not stopping until it's safe to do so (i.e. I'm dead).