Walk Away From Your Debt!

This NY Times article hails home owners that are well underwater on their homes, to walk from their mortgage. If the big banks can walk from their debt, why shouldn’t you? Well Henry M. Paulson Jr. declared that “any homeowner who can afford his mortgage payment but chooses to walk away from an underwater property is simply a speculator — and one who is not honoring his obligation.” (Paulson presumably was not so censorious of speculation during his 32-year career at Goldman Sachs.)

Of course this action has serious credit repercussions, but cares to hold onto property that won’t reach it’s paid value for 60+ years. If the banks can liquidate bad debt like tossing out a bubble gum wrapper, why shouldn’t you right! We’re no longer a country of risk anymore. Go ahead and buy that new car, on credit even! You can’t afford it but you really really want it (and have convinced yourself you deserve it too).

Phil Collins – “Take Me Home” (12″ Extended Version)
[audio:http://homepage.mac.com/cavecybernation/media/blog/2009/12/PhilCollins_TakeMeHome_ExtendedVersion.mp3]

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Maxed Out on Netflix

With the biggest banks falling down like bowling pins from the giant ball of bad financial decisions, so are most Americans (Citibank, Bear Sterns etc.). I’m too not alone when I say I have more debt that I’d like to have. When you live in NY, there’s so much out there to tempt you to spend: events, parties, fashion, bars, plays, movies, shows, whores, and food to name a few. Recession headline loom as home prices fall, gas prices continue to rise as do basic necessities like milk and beer.

All these thoughts have been strummed up this week when I finally rigged up my entertainment system to a wireless computer viz S-video connections. I can now watch all streaming videos, movies and TV (full screen) on my TV in surround or stereo sound. This is sweet! No more need to go to any video store, pay for on-demand or even buy porn! Neflix on demand service has become a reality and the picture is great.

So my first movie on demand was a documentary (not many of the blockbusters are available on demand for fear from the movie industry that the consumer will steal/copy them, and they wouldn’t make money). I watched Maxed Out, a frightening look at the rising level of personal and national debt in the USA with a huge emphasis on the victims as well as the banking tactics that contribute to the mis-education and coercion of the consumer to continue deeper into that debt with misleading offers or revolving door credit.

Typical consumers feeding into the hugely powerful societal push for the best, newest, biggest shit find using that plastic for a new shirt or the latest unique line of sneakers or a new flat screen is enticing. I’ve good about controlling my will power by not participating, partly due to a conscious choice to reduce my debt, increase my capital (get liquid), and focus on financing some important personal goals like our wedding and more travel. It’s bit-my-tongue tough to do this in NY. I hold back from that last $12 whiskey (my body thanks me though in th morning), I only by brand names at century 21 or stick with smaller, lesser known fashion designers (1Aeon), or opt for a smaller tapas spot rather than the steakhouse for Tuesday dinner (if I’m not chefin it up at home).

Maxed Out had also a very striking quote that is important to consider when voting for all future federal, state and local political candidates:

“The government spends more [of the national budget fund] on interest payments [to the national debt], than on homeland security, education and healthcare combined.”

National Debt Clock in NY, IRS BuildingAs of today, the national debt is over 9 TRILLION dollars. The only president in the last 35 years to attempt to reduce the national debt was Clinton in 1999, when we had a budget surplus. At that time the debt was a little over 3.6 TRILLION dollars. Now I hear all the time from my banking institutions, creditors, family and industry professionals that having a high debt and more so growing that debt is a VERY bad thing… so I can’t imagine as smart as we assume our politicians to be, that we continue to grow this.

Either way, I’ll continue to eat well in a more cost friendly way, I’ll continue to live well in creative ways but I do hope our future leaders look to do the same for the American people: get creative in reducing our debt without sacrificing services like police, fire departments, security, education, healthcare, libraries, and parks. We’ve already seen the results of sacrificing public services, in Katrina, infrastructure failures (bridges), and limited funding of our national recreational parks.

Anyhoo… if you don’t have it, get Netflix, reduce your tv watching usage (it’s all crap anyway except for Meerkat Manor, Current TV or Fuel TV), check out this flick and save your money – you’ll be needing more of it soon.