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Feelstranger [[log in to unmask]] writes:

> Dana, you presume too much.
>I haven't bought a new mountain bike in 11 years

<further yadda yadda pitched>

Am I now to presume you're presuming that my use of "you" refers to the
personal "YOU"?  (I was just sayin'... it wasn't the personal you- I
don't even KNOW you.)

People who buy all o' that parc you posited as examples on credit just
plain have "issues" or can't do the math, (whether it be the "you" for
example or YOU personally ;-)  ) But I make no presumption either way
whether the personal-you actually applies here. How the lleh would I
know? OK, so now you've told me, I accept that at face value. Since a
lot of people DO leverage their lifestyles, it's clear that those
material expectations (rather than achievements) exist.  But I wouldn't
necessarily project that sense of entitlement on any particular
generation- they're out there at all ages and income levels.

>Simple examples provided to support the thought - that incomes have not
>risen, and credit appears to have become essential to the economic
health of
>our country -

In the same way the heroin is essential for keeping the apparent
ill-health of withdrawal symptoms at bay...

Sure, some credit is absolutely essential, but the huge volume of
silly-money that flowed into the US economy through Wall Street like a
tsunami wasn't doin' our economic health any good, (even if it felt
pretty good for many at the time.)  The tide of investor capital is
international, and where it flows it also ebbs. It is delusional to
expect that the world will continue to support our collective habit, and
the withdrawal is bound to hurt. Those who rode the flow too hard find
themselves stranded.  Spritzing or even hosing the beached whales with
taxpayer cash might help, but I dunno... seems bound to failure if done
badly. (And confidence in the appointed or elected officialdom is not
high.)

The relatively flat-to-almost-normal GDP-per-capita growth numbers of
the past decade don't show the income picture very well.  Real incomes
for most 'mericans have been stalled in slow growth or declining for
quite awhile, even with a rising GDP, even with rising GDP-per-capita.
The majority of the income growth has gone to the high end of the food
chain (but they're all worth it, eh? ;-) ) Only the
arithmetically-challenged try to maintain a projected/expected lifestyle
on credit, but apparently they're out there (and in significant
numbers), if led there by the purveyors of easy credit.  How healthy is
that for the economy? :-(   (I s'pose it was considered acceptable by a
lot of financial industry insiders, maybe even Paulson up until
recently.)

>BTW, do you recommend I sell my house of 10 years, in the current
market,
>because the recent city wide re-appraisal increased the property taxes
by
>$1900/year?
>
>"so much house..."   I can just imagine what you’re picturing in your
head

I have no picture of whatsoever of the house (or YOUR personal house)
I'm only picturing the balance sheet, and the size of the tax burden
slice of the after-tax income pie.  (10% of take home is significant,
but not scary-big since it's mitigated in other tax equations.  Only you
can determine how affordable that is, or what the right remedies would
be.)

Whether one (I'm trying to avoid "you" here :-) ) opts to buy or sell at
any particular time or for what reasons (of which there are many) the
tax numbers count.  If it's unaffordable it's unaffordable- people can
and do get tax-assessed out of their homes. (Fixed-income retirees are
the classic- my mother would be in that boat were it not for local
regulations in that town protecting low-income retirees. Trust me, it's
no palace, but no way could she pay going rate if taxed at current value
of the property.)  I have no recommendation either way as to whether
you-personally buy or sell now (or ever), only that you DTFM, make
adjustments as-necessary.  At some point the "adjustments" may include
finding different housing, but hopefully you're not there.

dana
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