The credit system is the most effective ruse used to keep this economic system afloat

[Danny Up]

you lost if you're using credit for more than cars and homes

@ thats how the "wealthy" do it. you have to have money in order to be wealthy. in order to have wealth you can't have debt. credit is debt.

unless your a serious business person, like a realtor or broker, credit is a trap.

If you owe, you are in debt. Just because you may have the means to pay it off doesn't erase that. What happens if you get swindled out of that money or an illness or medical emergency strikes and depletes your bank?

Everythings a trap if you misstep. Using cash only can bury you just as fast as using credit.

 

[Julius Skrrvin]

this forum needs a better face palm smiley


@Orbital-Fetus

 

[88m3]

C/s to the fullest


@Orbital-Fetus

 

[Black smoke and cac jokes]

Some good comments in here, not going to argue with either side. Just want to throw some facts out there. The American marginal propensity to consume (How much you spend more on consumption with an increase in disposable income) has been over 1 several times after 1950. This means that people are spending more than they actually have aka credit.

This is very harmful to an economy that is reliant on consumption/income/production. Think about it this way. High consumption -> government seeing potential for a higher GDP -> increases money supply to raise inflation and price levels -> goods and services costing more -> more people need to use credit -> either raise consumption and go back to the first step or an inflation/asset "bubble" is created that shows a disillusion of an increase in the country's economical activity.

This is one of the few topics where arguments on both sides are right it's just how much credit we should allow and if it should be in the hands of banks who, now after banking deregulation, are greedy in their for-profit agenda.

 

[Black smoke and cac jokes]

you lost if you're using credit for more than cars and homes

@ thats how the "wealthy" do it. you have to have money in order to be wealthy. in order to have wealth you can't have debt. credit is debt.

unless your a serious business person, like a realtor or broker, credit is a trap.

My brotha,

Companies BUY and MERGE other companies on debt. Debt is essential in every large business transaction, the question is just if you will benefit from it in the long-run.

 

[OH SOHH TRILL]

typical smart dumb nikka thread.

you completely lack an understanding of the TIME VALUE OF MONEY/GOODS

for a consumer, it is better to spend $1 dollar of the banks money today than $1 dollar of your money. even if it costs you 1.05-1.07. now if it costs you 1.15, you might have a problem.

for the banks, it is better if 1000 people spend the banks $1 dollar today and pays back a collective 1500.

thus credit used properly is good for both consumers and banks. and the economy as a whole because people have more purchasing power.

credit is only "bad" when you're charged usury rates. if you're responsible, you can get significant loans at 3-5% these days and credit cards with 0-2% and rewards.

you can in turn invest your money and on average expect a yearly 10% return (not year to year but long term since 1926)

and if shyt hits the fan, you still have your cash and can default on the credit, with no consequence except a credit hit.

 

[stealthbomber]

there is a difference between asset and debt friend


best to remember that friend

true, but most assets aren't very liquid.

If you owe, you are in debt. Just because you may have the means to pay it off doesn't erase that. What happens if you get swindled out of that money or an illness or medical emergency strikes and depletes your bank?

Everythings a trap if you misstep. Using cash only can bury you just as fast as using credit.

also true, but if you have bad credit your interest for everything goes up. if your broke you shouldn't be buying it anyway.

My brotha,

Companies BUY and MERGE other companies on debt. Debt is essential in every large business transaction, the question is just if you will benefit from it in the long-run.

i was talking about the average person, if you're business literate debt and credit are great tools.

 

[stealthbomber]

typical smart dumb nikka thread.

you completely lack an understanding of the TIME VALUE OF MONEY/GOODS

for a consumer, it is better to spend $1 dollar of the banks money today than $1 dollar of your money. even if it costs you 1.05-1.07. now if it costs you 1.15, you might have a problem.

for the banks, it is better if 1000 people spend the banks $1 dollar today and pays back a collective 1500.

thus credit used properly is good for both consumers and banks. and the economy as a whole because people have more purchasing power.

credit is only "bad" when you're charged usury rates. if you're responsible, you can get significant loans at 3-5% these days and credit cards with 0-2% and rewards.

you can in turn invest your money and on average expect a yearly 10% return (not year to year but long term since 1926)

and if shyt hits the fan, you still have your cash and can default on the credit, with no consequence except a credit hit.

@ bolded

@ underlined thats the problem. most people are financial irresponsible. they spend and spend then look back like ok so how am i gonna pay all this off. if we had a more educated populace i agree credit would be the greatest thing ever, but we don't. i mean the fukking government is the worst offender, how can we expect people to be any better.

 

[88m3]

Wow friend

 

[Black smoke and cac jokes]

true, but most assets aren't very liquid.

also true, but if you have bad credit your interest for everything goes up. if your broke you shouldn't be buying it anyway.

i was talking about the average person, if you're business literate debt and credit are great tools.

I see you touched on it in a later post, yes education is key.

The average person also benefits from debt, especially today. The interest rate is very low so this is the perfect time to be in debt, hell I took a loan to invest in different business ventures because the long-term return will be higher than what I have to pay. It is beneficial brah, it's just that people do not know how to use debt.

You previously stated that people are dumb if they use credit for things other than house or cars. Well, to start off, buying a car with debt is the most uneducated and idiotic thing you can do. The value of the car drops by 30% when you drive it off the parking lot and continues to depreciate in value so it is not a good investment. Also, the American real estate market is very volatile so buying a house without a great amount of "back-up" cash is also stupid.

A private person should take loans to make long-term investments that gives a higher return so, again, debt is a great tool to use to get "wealth".

 

[alybaba]

Credit should ideally be used to finance income-generating and/or appreciating assets. Just do that and don't use it to finance consumption and you'll be fine.

 

[Ethnic Vagina Finder]

The current credit system is one big house of cards once you add the fact that the dollar is a worthless piece of cotton (the irony is that everyone refers to it as paper)

The only reason why credit works now is because of the size of the population. The too big to fail theory unfortunately. The entire economy is based on credit and thus its based on "trust" in the so called capitalist system so of course it will never fail.

 

[Richard Wright]

The most powerful richest bankers (thik jp morgan, the rockefellers, rothchilds) created the federal reseverve and the fiat banking system to give themselves control of people - an ever increasing money supply makes the money u work harder and harder for increasingly less valuable.

The student loan thing was genius - now all young people are forced to take their debt too

If I control a nation's money i dont care about its rulers/laws - Nathan Rothschild