13 February 2009

House of cards

Click here to view excerpts from CNBC's House of Cards, a two-hour-long documentary that reviews the sub-prime mortgage crisis in America. Keep in mind that David Faber is out to blame anyone but the American public for the economic crisis. While investment bankers, lenders, and the Fed (among others) all contributed to the sub-prime mortgage crisis, American consumers are also to blame. We've been borrowing like crazy, believing that the wealth bubble we were living in for years was never going to break. And it did. We can't pay back our mortgages (why people were signing mortgages and loans for $500K when making less than $50K/year is beyond me) and have a lot less wealth. So keep in mind, when watching House of Cards, that the financial crisis is all our faults.

Key lesson: Live within your means. Don't buy a Lexus if you can't afford a Lexus. Yes, those Dolce shoes are to die for, but if you can't part with $700 in cash, then don't buy them! Ask yourself, "Do I really need a new cell phone or is my old Motorola RAZR doing the trick?" Visit www.timeout.com to learn about free/cheap activities in your city...

No comments: