most emailed business from ny times business today

[ChemEng]

As his wedding day approached last spring, Marshall Whittey found that his money could not keep pace with the grandiosity of his plans. But rather than scale back, he chose instead, like millions of homeowners across the country, to borrow against the soaring value of his home.

Why bother reading the rest of the article when the first paragraph tells you what the problem is exactly? IF YOU CANT AFFORD SOMETHING, DONT BUY IT. I am constant amazed at all the news stories that have blanketed the media these past few months/quarters from people who have trouble understanding that little rule.

Sooo... What if you want to buy a wedding? Well do you have the cash for it? No, but... WELL IF YOU CANT AFFORD SOMETHING, DONT BUY IT.

Its so backwards now, that people that act irrationally like above and in the article are wagging the financial markets. Sooo instead of rewarding those with good financial behavior (good spending habits, living below one's means, saving, et al) with high interest rates for their accounts. They are instead punishing that behavior with lower interest rates to reinforce the behavior that got us in this situation to begin with.

IF YOU CANT AFFORD SOMETHING, DONT BUY IT.

Is it really that hard? I can assure you that after the first time people ARENT bailed out, they wouldnt forget it.

 

[offtrack]

Homeowners Feel the Pinch of Lost Equity

http://www.nytimes.com/2007/11/08/b...em&ex=1194670800&en=ce5359ca94388c7d&ei=5087

This is why I don't think they'll let the market tank till after holidays. If we get the slower consumer spending on top of other legitimate worries, we could be really feeling a pinch. But eventually this will all catch up to us.