Martin wrote:

> Lee Jones wrote:
> 
>> For decades, the US has -- through the miricle of credit -- used future
>> earnings to pay for current consumption.  When my parents bought a car
>> in the 1950's, they saved before the purchase and used a small, short
>> term loan to make up the difference.  The only real loan that average
>> people found acceptable was for a home mortgage. 
> 
> Inflation adjusted tuition in 1950 at MIT was about $8k and now it's
> closer to $25k*. The cost of housing (renting) is through the roof. Food
> is more expensive (for the same basic needs). 
> 
> I spent 5 years in college which I understand is not my right, but some
> would say I should be able to do it if that's my desire. I left college
> with $65k in debt - mostly food and tuition for those 5 years. If I were
> to somehow "save up" to go to college it would have taken me at least 10
> years. 

I think what Lee was talking about is spending for consumption, or buying
superfluous assets. Investing into something worthwhile (education, a sound
business) is probably more in that "acceptable" league of home mortgages he
mentioned.

> Sure plenty of people use credit cards when they shouldn't, [...]

I think that's it. If all the (public and private) debt in the US had been
taken out for things like a college education or similar "values", I think
the economy would be in better shape :)

Gerhard

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