Lee Iacocca
03-04-2009, 08:15 PM
#1
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I just finished reading Lee Iacocca's biography, its an older book, from 1984.. Reading his thoughts on whats wrong with the US and global economies and where it will lead, you would think the guy could really see the future. The only thing he didnt add into the bubble was China, but back then Japan was the economic invader..
An interesting part of the book was reading all the banks that tried to deep six the original Chrysler loan guarantee, Not bailout , but load guarantee.. The Veto crowd was none other than, Citibank, Lehman brothers, Morgan stanley, etc etc... My my how times have changed.. Iacocca is not onside with mass corporate welfare, but repayable loans, he stated that adding to the deficit year after year will just further deepen the US economic problems, you can't put the country into debt constantly to build an economy, real work has to be done that produces real money, and the debt reduced.
A great book to read now, maybe someone should Lend Obama a copy..
An interesting part of the book was reading all the banks that tried to deep six the original Chrysler loan guarantee, Not bailout , but load guarantee.. The Veto crowd was none other than, Citibank, Lehman brothers, Morgan stanley, etc etc... My my how times have changed.. Iacocca is not onside with mass corporate welfare, but repayable loans, he stated that adding to the deficit year after year will just further deepen the US economic problems, you can't put the country into debt constantly to build an economy, real work has to be done that produces real money, and the debt reduced.
A great book to read now, maybe someone should Lend Obama a copy..
03-07-2009, 07:29 AM
#3
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Join Date: Feb 2003
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I'll have to go back through your blog and read it... He's got some speaches on you tube as well.
I am just watching the morning news on CBS, on hard luck recession stories of people having a "tough" time living on half their normal income , only bringing in 5000.00 a month .. And those people are in their 50's.. Thats whats wrong with America, to many people not taking their own personal debt seriously and living way above thier means.. 5k a month in Canada is considered wealthy and these people are moaning about it.
But in their 50's with a $2500 a month mortgage, wtf?
I am just watching the morning news on CBS, on hard luck recession stories of people having a "tough" time living on half their normal income , only bringing in 5000.00 a month .. And those people are in their 50's.. Thats whats wrong with America, to many people not taking their own personal debt seriously and living way above thier means.. 5k a month in Canada is considered wealthy and these people are moaning about it.
But in their 50's with a $2500 a month mortgage, wtf?
03-07-2009, 10:42 AM
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Originally Posted by Maxt' post='917902' date='Mar 7 2009, 05:29 AM
I'll have to go back through your blog and read it... He's got some speaches on you tube as well.
I am just watching the morning news on CBS, on hard luck recession stories of people having a "tough" time living on half their normal income , only bringing in 5000.00 a month .. And those people are in their 50's.. Thats whats wrong with America, to many people not taking their own personal debt seriously and living way above thier means.. 5k a month in Canada is considered wealthy and these people are moaning about it.
But in their 50's with a $2500 a month mortgage, wtf?
I am just watching the morning news on CBS, on hard luck recession stories of people having a "tough" time living on half their normal income , only bringing in 5000.00 a month .. And those people are in their 50's.. Thats whats wrong with America, to many people not taking their own personal debt seriously and living way above thier means.. 5k a month in Canada is considered wealthy and these people are moaning about it.
But in their 50's with a $2500 a month mortgage, wtf?
for me $5000/ month is way past rich, like i'd have no idea what to do with that kind of money rich
03-07-2009, 11:43 AM
#7
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Originally Posted by j9fd3s' post='917905' date='Mar 7 2009, 08:42 AM
for me $5000/ month is way past rich, like i'd have no idea what to do with that kind of money rich
Sit around seeing if people's cars are on their landscape all day...
03-07-2009, 04:34 PM
#8
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Originally Posted by Rob x-7' post='917909' date='Mar 7 2009, 10:41 AM
you cant live on $60k a year around here, not if you want to own a house anyhow
People never want to sell and lower their expectations either, thats another mental block to overcome.
03-07-2009, 04:59 PM
#9
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if people were not allowed to get mortgages that put themselves over the 35%-38% debt to income ratio there would be far less problems. Instead they got mortgages they should not have had, and on top of it all they borrowed 95%-100% of the house, prices dropped, thier interest only payments went up and now they are way upside down on thier home.
I almost fell for it, 2 years ago I wanted to buy a larger house, but then I thought "what if Im slow at the shop for a few months, what if my wife loses her job or she gets hurt or sick"? Too many what ifs so they scared me straight.
Figure a decent, not super large and fancy house in a good area here is no less then $450k, the property taxes on that house will be in the $8000-$12000 range PER YEAR easily. Close to $200 a month for electric, $35 for water, heat your house in the winter? lets say you only use 800 gallons and you bought it at $2 a gallon- thats another $133 averaged per month - now imagine when oil was over $4 a gallon to heat your house? Home owners insurance- another $1300 to insure it and its contents for the value that you owe on the house.
Then you still have to drive to work, feed and cloth your family, pay car insurance, etc and so forth.
They hang plasma tvs on the walls and they lease big gas guzzling SUVs.
So people who make under $75k a year have no business being in the situation that I outlined above- but they are and they are in BIG trouble.
I almost fell for it, 2 years ago I wanted to buy a larger house, but then I thought "what if Im slow at the shop for a few months, what if my wife loses her job or she gets hurt or sick"? Too many what ifs so they scared me straight.
Figure a decent, not super large and fancy house in a good area here is no less then $450k, the property taxes on that house will be in the $8000-$12000 range PER YEAR easily. Close to $200 a month for electric, $35 for water, heat your house in the winter? lets say you only use 800 gallons and you bought it at $2 a gallon- thats another $133 averaged per month - now imagine when oil was over $4 a gallon to heat your house? Home owners insurance- another $1300 to insure it and its contents for the value that you owe on the house.
Then you still have to drive to work, feed and cloth your family, pay car insurance, etc and so forth.
They hang plasma tvs on the walls and they lease big gas guzzling SUVs.
So people who make under $75k a year have no business being in the situation that I outlined above- but they are and they are in BIG trouble.
03-07-2009, 09:55 PM
#10
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We made the turn from a home being shelter, from a family moving into a home, raising kids and dieing there to a house being an investment, you buy more house then you can afford, turn around and make a profit. One issue arrises from that, when the house moved from shelter to a get rich quick profit turning engine you enter a supply and demand situation. What does that mean? Simple, when supply is less then demand price shoots up and manufacturing eventually exceeds demand and the prices go down. Supply has destroyed demand, now people (just like rob said) have a giant home they don't need and can't afford.
America has been fueling its economy for MANY MANY years with "Bubbles", everyone got paper rich on junk bonds in the 80's and they lost their ***, everyone got paper rich investing in the dot com bubble lining up to hand money to companies that had no business model, companies that had absolutely no plan to make money, then came the housing bubble, fueled by the credit that has led us down this path. We have developed a society that gets out of bed in the morning for stuff a society that not only encourages greed, but it worships it a society that imprisons drug dealers and plea bargains con men. That same concept leads people to things like gigantic homes, tell me what a couple with no kids needs with a 5 bedroom 2500 square foot house, hell tell me what a family of 4 needs with a house that big, it doesn't take much of a leap to get to that 10,000 square foot house, greed is encouraged to such an extent that people flaunt it, huge houses, fancy cars you name its all part of a credit paper myth all bought, supplied and manufactured (yes i did that it inverse for effect) by credit, bought with money that didn't exist, bought by profits that originated from the ground up from credit, from paper.... the ghost of money. Loaning more and more money on things that don't exist, it took credit to buy the raw materials, credit to produce the product, credit to advertise the product and last but not least, credit to buy the product. Now you may be thinking, somewhere along the line those debts get paid back and that my friend is where you are confused as you feel credit only exists in the form of that bank loan, in the form of that credit card, but in fact the credit exists in those little green slips of cotton you carry around in your wallet, the credit exists in the very thing you use to pay your credit card, the money that many feel is the counter to credit in fact ORIGINATES FROM CREDIT. That greenback is saddled with TRILLIONS in debt.
Not only is this not over, but it has just begun, in fact it has BARELY begun. You see this mess being blamed on the guy who doesn't pay his bills because he can't afford it, but the people who say that are ******* idiots as they have no concept of just how deep the chasm of credit has been dug.
America has been fueling its economy for MANY MANY years with "Bubbles", everyone got paper rich on junk bonds in the 80's and they lost their ***, everyone got paper rich investing in the dot com bubble lining up to hand money to companies that had no business model, companies that had absolutely no plan to make money, then came the housing bubble, fueled by the credit that has led us down this path. We have developed a society that gets out of bed in the morning for stuff a society that not only encourages greed, but it worships it a society that imprisons drug dealers and plea bargains con men. That same concept leads people to things like gigantic homes, tell me what a couple with no kids needs with a 5 bedroom 2500 square foot house, hell tell me what a family of 4 needs with a house that big, it doesn't take much of a leap to get to that 10,000 square foot house, greed is encouraged to such an extent that people flaunt it, huge houses, fancy cars you name its all part of a credit paper myth all bought, supplied and manufactured (yes i did that it inverse for effect) by credit, bought with money that didn't exist, bought by profits that originated from the ground up from credit, from paper.... the ghost of money. Loaning more and more money on things that don't exist, it took credit to buy the raw materials, credit to produce the product, credit to advertise the product and last but not least, credit to buy the product. Now you may be thinking, somewhere along the line those debts get paid back and that my friend is where you are confused as you feel credit only exists in the form of that bank loan, in the form of that credit card, but in fact the credit exists in those little green slips of cotton you carry around in your wallet, the credit exists in the very thing you use to pay your credit card, the money that many feel is the counter to credit in fact ORIGINATES FROM CREDIT. That greenback is saddled with TRILLIONS in debt.
Not only is this not over, but it has just begun, in fact it has BARELY begun. You see this mess being blamed on the guy who doesn't pay his bills because he can't afford it, but the people who say that are ******* idiots as they have no concept of just how deep the chasm of credit has been dug.