Reply to: This is how I run my house

[BrilloPad]

If you're in debt but paying it back, you're temporarily poor.

If you're in debt and not paying it back, you're permanently poor.

If you're in debt and continually increasing it, hand the purse strings to someone else.

Depends on what the debt is secured on (if anything). Anyone who bought a house between 1992 and 2000 is unlikely to see negative equity. Another buying opportunity will be along.

[EternalOptimist]

I think it's pretty naive to think we should live in a world without debt.

aha.

Now we get down to the nitty gritty. IMHO this is what its all about

So is it naive for a household, a country, or both? Also please explain why It's naive

[Doggy Styles]

If you're in debt but paying it back, you're temporarily poor.

If you're in debt and not paying it back, you're permanently poor.

If you're in debt and continually increasing it, hand the purse strings to someone else.

[BrilloPad]

I disagree. Those following her were so enthralled by the amount of cash flowing around the City that they forgot anything else existed.

She made sure we only spent what we earned. And gave the service sector a good leg up.

[BrilloPad]

I watched a program recently which talked about the UK being the first country to adopt the concept of national debt, and that this was how we were able to afford a massive navy hundreds of years ago, possibly related to Napolean but I wasn't listening closely. Apparently the Dutch were leading the world in banking prior t us stealing their ideas and improving them, or something.

I think it's pretty naive to think we should live in a world without debt.

Secured debt (such as mortgage) is not too bad (unless you buy at a really stupid time like now).

Anyone who borrows at usurpury interest rates (store cards, loan sharks) wants their head examined.

[Cyberman]

Basically, Labour have not got a clue how to do good housekeeping or to keep taxes down, but we have to keep relearning that every 20 years or so. It's called democracy.

[d000hg]

I watched a program recently which talked about the UK being the first country to adopt the concept of national debt, and that this was how we were able to afford a massive navy hundreds of years ago, possibly related to Napolean but I wasn't listening closely. Apparently the Dutch were leading the world in banking prior t us stealing their ideas and improving them, or something.

I think it's pretty naive to think we should live in a world without debt.

[lilelvis2000]

This is how I run my house:

I give it all to my wife and she gives me a little to live off (and not a penny more).

Result: Always in the black.

WHS: except we're always in the red.

[lilelvis2000]

It was run fine by Maggie. Its just that those following her were/are numpties.

I disagree. Those following her were so enthralled by the amount of cash flowing around the City that they forgot anything else existed.

[Mich the Tester]

This is how I run my house:

I give it all my wife and she gives me a little to live off.

Always in the black.

Yes, as long as she doesn't go around securing loans against your house and your income. I'm not suggesting your wife does, but this kind of thing happens.

[Scotchpie]

This is how I run my house:

I give it all to my wife and she gives me a little to live off (and not a penny more).

Result: Always in the black.

[Bagpuss]

For the last few years M4 has been increasing rapidly. If it had been targeted a few years earlier then the debt bubble would not have ballooned as much.

Though I do accept that any inflation measure targeted starts to misbehave. A bit like quantum mechanics really.

When you start following one mantra like some kind of social experiment it only ever seems to end in failure IMHO. Monetarism couldn't save the banks in the end. But then it could be argued interest rates weren't properly used, soon enough (too low for too long).

Because we have a government in power which doesn't understand economics (Gordon Brown's degree is in history, his doctorate is in "the labour party and politics in Scotland". His economic and financial qualifications are...um....)

You don't really think that Gordon makes decisions off his own back? The country is run by senior civil servants, some remain despite changes in Government.

[PM-Junkie]

...Can the economists in the congregation tell me why the country is run any differently ?

Because we have a government in power which doesn't understand economics (Gordon Brown's degree is in history, his doctorate is in "the labour party and politics in Scotland". His economic and financial qualifications are...um....)

Labour governments seek to destroy wealth to benefit those who haven't got it, Tory governments seek to protect those who have wealth to the detriment of those who don't. As a result, Labour governments always run out of money, Tory governments always run out of support.

[Mich the Tester]

I work hard and get my pay.

post on CUK

I pay my taxes.

Are you sure you're getting good tax advice?

[b0redom]

For the last few years M4 has been increasing rapidly. I

Yeah, that's one of the reasons I stopped working in Slough - the commute seemed to be taking much much longer.....

IGMC