How do ordinary American families finance themselves?
By Daniel at 20 December, 2009, 12:26 am
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How do ordinary American families finance themselves when their income is compressed and their access to credit is limited while their cost of credit is high?
They have 2 choices:
1. They do the honorable and hard thing by resetting expectations, cutting costs rigorously and living as best they can within cash flow
OR
2. They do the dishonorable and facile thing by repudiating debts( including the odious practice of “strategic defaults”) and obligations, whining for entitlements without making any contribution in return and stealing from landlords, utilities and phone companies by not paying their rents and bills
State and muni Govts face the same 2 choices; no surprise that very few will choose the honorable path. Most do and will keep doing the dishonorable thing until they are, finally, forced to live within cash flow.
The Federal Govt does not face these 2 choices…yet.
It can be counted to exercise the most deceitful and dishonorable option: print fake dollars in gargantuan amounts for as long as it can. But even for the US Regime there will be a last day.
- unknown
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