[quote=CA renter]AN, please directly reference the quote where I said that leverage = failure.[/quote]http://piggington.com/over_21_of_homeowners_in_sd_county_have_paid_off_houses?page=1. You said [quote=CA renter]but that is different from leveraging up to buy multiple properties, stocks, futures contracts, or getting into “partnerships” or investing with fast-talking salespeople, etc. which is a recipe for failure more often than not, IMHO.[/quote] I was short handing leverage = failure, they’re not your exact words.
[quote=CA renter] It doesn’t always lead to failure, but lots of leverage, especially when everybody is leveraging up at the same time to buy assets because people are expecting future price increases, will fail more often than not, IMHO. I’ve said before that self-liquidating debt is fine, and debt that a person can easily pay back is fine, too; but when people are leveraging up to speculate (and then expect everyone else to bail them out later because “nobody could see it coming”), it is not fine.[/quote]I agree with this, but this is no different than the vast majority who lives pay check to pay check and use their credit cards to finance their consumption.
[quote=CA renter]Also, as someone who is currently fighting the BK of a small business that owes us money, and as a result have spent far too much time listening to BK hearings, I would definitely say that all of us are paying for these deadbeats…and yes, I’m judging many of them. Like BG said, you ought to sit in on these hearings so that you can get a better understanding of how people got into debt, and how the creditors (and the customers of the institutional creditors, and taxpayers who are bailing out these institutions, too) are bailing out all of these deadbeats. Go to the hearings, and you’ll see it’s even worse than you would ever imagine. And the bar for declaring BK is way too low, IMHO. It’s sickening.[/quote]It sounded like you took the calculated risk to be a lender and failed. There’s nothing wrong with failing. You get up and try again. We’ve all have our failures.
