Confessions of an Economics Journalist

A fascinating and very well written article from the NY Times on how someone who did know better got sucked into the US Bubble …even though they knew they really really shouldn’t

nytimes.com/2009/05/17/magaz … anted=1&em

My Personal Credit Crisis

Then to his first panic attack

That makes for horrific reading.
:open_mouth:

Yep, I can see that going to the top of the pin best seller list next month. One way of thinking outside of the box though to pull yourself out of the crap by writing a book. I saw ads in South Africa a couple of years ago offering loans at 18% and thinking to my self that some aspects of Africa are crazy. 27% interest though in the US, crazy.

It’s terrifying both that he was offered that much money and that he took it.

What he’s describing there is worse than anything I’ve heard of happening here.

What is this eejit playing at ?
Doesn’t he know to always blame the government … banks … developers etc.
Remember, its never the poor, unfortunate borrowers fault.
‘Honest guv, the bank manager put a gun to me head’

A $140 speeding ticket and it all clicks! What a ****er!!! :unamused:

I think there are far more intresting points, like Bob mortage man saying:

It captures the mindset of people of those boom times. Banks nor government were not to tell people ways of life. Salary multiplies restriction would lose more votes than all recent tax hikes. People would hate goverment for telling them what to do, not mentioning taking away a hope (to have house, become rich etc). Takin this feeling away:

Get a hand of so much money must be tremendous feeling, instant gratification which is way beyond salary. Now think, “average” cleaner, bus driver or programmer does not operate 100.000s of euro (or zloty). This is new world of being a serious investor. How can this stopped? How can a person be degraded from being investor to becoming a simple salary man? If from tomorrow taxes double one would lose just half of salary, if you put limits on lending one looses unimaginable amount of money.

I do not think bubble in last years was practically stoppable. It would be more painful than current downturn, because at least now we can blame external reasons. Any party would face harsh protests.

Very true.

The whole sorry mess raises fundamental questions about the nature of the democratic system and the western way of life in general. GreenBear posted a speech given by Alexander Solzenitsyn over 30 years ago today in the Piston. The observations contained therein are really a collection of musings on the nature of the western way of life (as well as the communist regime of the former USSR) which even then was essentially laying the foundations for the set of circumstances you have outlined above to be eventually played out.

The real question has to be “can we do better?”.

The loan was taking up 90% of his take home pay and it would “get expensive eventually”

The other salary available in the house was to be Patty’s. Later we find out.

There was never a chance in seven hells that that load could be paid back, yet he still took it out.
Unlike alot of the population who do have to rely on financial advisors to some degree or other, this guy is an educated financial journalist, he should be financially literate, and if not, at least there should be someone among his friends who he could have had look over the figures.

It could have been worse…

https://farm4.static.flickr.com/3645/3489150328_022d811fcc_o.jpg

He’s taking the mickey with a name like that… 8)

The problem was most people thought that houses would continue to rise indefinitely. Of course a crash would come but not on their watch.

It’s like people getting involved in a pyramid scheme. They think they’re going to make lots of money and get out before the scam collapses, it usually doesn’t work like that. This is what has now happened in the property market.

Madness of the crowds and all that.

businessinsider.com/henry-bl … ews-2009-5

I dont believe this for one minute that someone whose supposed to be fairly well qualified was naive enough to be sucked into the bubble. I do believe that his story would sell a lot of newpapers and books to the people who got caught up in it and who would feel association with someone in their own position, how can we spice it up and keep the pot stirring?
Well how about you have an online disagreement with a fellow journalist, jaysus you couldnt write this stuff. :unamused:

The men who respond to Andrews’ first piece above seem gobsmacked at the 4k childsupport he’s paying - after tax.

Now if we had a working, effective system of maintenance in this country, how much worse would things be here??

I know it’s slightly off topic but John Cleese settled his divorce yesterday, and isn’t happy about it. His quote of “I got off lightly. Think what I’d have had to pay Alyce if she had contributed anything to the relationship.”

His property in Malibu halved in value.

women.timesonline.co.uk/tol/life … 800290.ece