Like many Americans, my eventual goal is to own the house in which I live. Currently, I am renting a house which is bad insofar as I am paying (and losing) money in rent each month. On the plus side, for the first time in my adult life I am actually living in a house instead of an apartment. Its about 50/50. I do have the option to buy this house at some point, maybe getting some credit for rent I have already paid. Or I might find another house in the Hartford area to buy. That is a step I am ready to take. Except for this money thing.
Yes, the whole financial crisis has pretty much destroyed any means by which I could afford a house. That's not to say I am a financial risk. At least I don't think I am. Sure, I have some college debt and a little for my car. I don't, however, tend to carry a balance on credit cards and for the most part spend wisely. Still, I don't quite have the means to save up enough month to month to make a decent downpayment. Now, with the rules getting tighter on borrowers if indeed anyone can borrow money at all, I expect I really can't afford much of anything. That, indeed, is sad.
As a first-time home buyer I could sit back and complain that I have had nothing to do with this mess and shake my fist in the air because I now am unable to participate in the American house grab. On the other hand, I could hope and pray that market conditions might remain favorable to me as far as prices and interest go. I am not sure what to do. What I do know is that the prospects for me and my future family don't look good at the moment. So, like millions of other Americans, I sit and wait this one out. I think what could have been just months ago. But maybe this will work itself out.
Monday, September 29, 2008
Thursday, September 18, 2008
Economy? Yikes!
Out of curiousity I was browsing through the dictionary (yes, I spend hours doing that each day...not really) to find a definition of the word 'economy'. While economy can refer to the organization or management of resources, I knew there was another meaning that I couldn't quite pinpoint. Voila! Here it is, definition 2a: thrifty and efficient use of material resources; frugality in expenditures. Hmm...that doesn't seem to describe our ecomony. Millions of Americans have cars, houses, entertainment centers, educations, iPods, and lattes that they cannot afford. Yet, the growth of our economy is dependent on our own personal lack of economy. This is definitely a downside to our consumer economy.
While I like to blame guys in grey suits for lots of things in life, I have to stop myself here. Sure, corporate greed has played a large role in this current crisis. Most ndividuals don't bank at Bear Stearns, get loans from Fannie Mae, or even have AIG insurance. Yet, we are all affected by this culture of spending and carried along willingly in its currents. As I understand it, the housing crisis is simply the tip of the iceberg. Some people bit off a little more than they could chew for their mortgages and banks lost their gamble that people would pay them back. Okay, but that can't account for the entire crisis, can it? I don't think so. But it does point out to a very large problem in society that threatens to undo us all: cheap credit.
I am only 31 years old and yet I am already in debt up to my ears...mostly for college. But I am pretty well off compared to many my age who have college loans, car loans, AND huge credit card bills on top of it. Add in a mortgage and wow! Yet, up until now it was pretty easy to get a loan for pretty much anything. Because it was easy, we began as a society to live beyond our means. Put the Starbucks coffe on the card, then the jeans, and oops...need to make a tuition payment. Bam! Instant debt. This is what scares me, as an individual and as a pastor. If all the banks in the country called in our debt right now, we'd be sunk. Man, I wouldn't even know how to go about talking to all those who lost everything. My job wouldn't be easy...but there seems to be a leather bound book somewhere in my office that tells me about stuff like this. If only I could find it!
While I like to blame guys in grey suits for lots of things in life, I have to stop myself here. Sure, corporate greed has played a large role in this current crisis. Most ndividuals don't bank at Bear Stearns, get loans from Fannie Mae, or even have AIG insurance. Yet, we are all affected by this culture of spending and carried along willingly in its currents. As I understand it, the housing crisis is simply the tip of the iceberg. Some people bit off a little more than they could chew for their mortgages and banks lost their gamble that people would pay them back. Okay, but that can't account for the entire crisis, can it? I don't think so. But it does point out to a very large problem in society that threatens to undo us all: cheap credit.
I am only 31 years old and yet I am already in debt up to my ears...mostly for college. But I am pretty well off compared to many my age who have college loans, car loans, AND huge credit card bills on top of it. Add in a mortgage and wow! Yet, up until now it was pretty easy to get a loan for pretty much anything. Because it was easy, we began as a society to live beyond our means. Put the Starbucks coffe on the card, then the jeans, and oops...need to make a tuition payment. Bam! Instant debt. This is what scares me, as an individual and as a pastor. If all the banks in the country called in our debt right now, we'd be sunk. Man, I wouldn't even know how to go about talking to all those who lost everything. My job wouldn't be easy...but there seems to be a leather bound book somewhere in my office that tells me about stuff like this. If only I could find it!
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