Living on Cash

(3 steps back to the sanity of cash) Here is an idea I wonder about all the time. If I didn't have credit where would I be. Could I just live on cash alone. I find the cushion of a credit card very nice. It is nice to have something there in case you have a problem, but I do agree with the author that far too often people use it as a quick way out and don't think about the long term. We see what we get now and forget that for the next 6 months we have less to live on cause the credit card payment is more. Do you think you would be OK without credit?

How The Credit Mess Squeezes You

Here is a great article that puts the credit crisis at a level the typical person can understand. It shows the small places that it could effect the average person's financial life. Student loans and credit card rates are going up due to a lack of available money to loan out. (How the Credit Mess Squeezes You)

Rent vs. Buy

The debate rages on with the currently falling real estate values. Does the subprime effect change which side wins? This author has a few good examples of places where renters are winning in this market. I tend to like the idea of buying for more non-financial related reasons. I want the feeling of owning what I live in. I don't want to have to worry about what the rent will go up this year. Or for any half way decent reason being asked to leave or not being able to resign a lease when my term is up. I see the argument financially that you could save money by renting and the money invested properly could be worth a lot more if it is put in the stock market. Just remember if you are going to use this as your excuse for renting to actual put that "saved" money in the stock market. Too many times we use the idea that we can save money by doing something, but they we throw the money away in another wasteful place. Then at the end of the month we are in the same boat of wondering where all our money went. Read this article for a little light on how current events are shaping the rent vs. buy debate. (Now That Housing Has Soured, Renters Are Glad They Didn't Buy)

Subprime: Bailout backlash

(Subprime: Bailout backlash) I'll never understand why people who took bad loans deserve anything. They took loans. They were presented with the same information I was presented with when I signed my loan. Every term in black and white. The right to have an attorney review the contract. The right to refuse the contract. I don't care what irresponsible bad intentioned mortgage broker told them. They had all the right tools to prevent themselves from getting in this mess. No one forced anyone to take out a loan. Why can't we let the market runs its course? Why do investors in mortgages deserve a bailout? When you take risk and get burned we don't give you a refund. When is the government going to start backing every investment on the market against lose? Why should I lose money in a mutual fund? It will hurt the American public when I can't afford my own retirement. Sign me up for a government backed no loss portfolio.

New Rules of Credit Crunch

(The new rules of the credit crunch) Here is a quick read article about how the credit crunch is affecting the average consumer so far.