Comments on: Main Street Credit Crisis: Bringing Back Layaway for Purchases. The Anti-Saving Crusade Continues. http://www.doctorhousingbubble.com/main-street-credit-crisis-bringing-back-layaway-for-purchases-the-anti-saving-crusade-continues/ How I Learned to Love Southern California and Forget the Housing Bubble Thu, 09 Feb 2012 06:16:36 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Lay A. Way http://www.doctorhousingbubble.com/main-street-credit-crisis-bringing-back-layaway-for-purchases-the-anti-saving-crusade-continues/#comment-26735 Lay A. Way Tue, 11 Nov 2008 05:09:52 +0000 http://www.doctorhousingbubble.com/main-street-credit-crisis-bringing-back-layaway-for-purchases-the-anti-saving-crusade-continues/#comment-26735 If you lay away then you're an unsecurred creditor of the store. Circuit City, anyone? If you lay away then you’re an unsecurred creditor of the store. Circuit City, anyone?

]]> By: js http://www.doctorhousingbubble.com/main-street-credit-crisis-bringing-back-layaway-for-purchases-the-anti-saving-crusade-continues/#comment-26729 js Tue, 11 Nov 2008 01:52:37 +0000 http://www.doctorhousingbubble.com/main-street-credit-crisis-bringing-back-layaway-for-purchases-the-anti-saving-crusade-continues/#comment-26729 The only money spent that won't leak away is that spent on experiences. The stock market can crash, the housing market can crash, the dollar can depreciate and your fancy car can too. But they can't take away the memories of the vacation you took and all the other experiences you have had. The only money spent that won’t leak away is that spent on experiences. The stock market can crash, the housing market can crash, the dollar can depreciate and your fancy car can too. But they can’t take away the memories of the vacation you took and all the other experiences you have had.

]]> By: compass rose http://www.doctorhousingbubble.com/main-street-credit-crisis-bringing-back-layaway-for-purchases-the-anti-saving-crusade-continues/#comment-26722 compass rose Mon, 10 Nov 2008 22:14:30 +0000 http://www.doctorhousingbubble.com/main-street-credit-crisis-bringing-back-layaway-for-purchases-the-anti-saving-crusade-continues/#comment-26722 DHB's point is crucial: for many, money isn't worth anything unless it's specifically targeted for spending. Savings is the largest line item in our monthly budget--more even than our PITI. I've talked to so many people who can't understand why one would have savings, unless it were "for" something. ~ "For" retirement, for instance, which means a massive end-of-life shopping spree. Golf carts, RVs, bionic knees, grandchildren gifts, and so on. That's considered the aim and goal of a life of work! Having a total cashectomy in a few years or decades of full-time consumption. It's American Potlatch I guess. But it appeals to me not at all. ~ We save because we save. We have no idea how, or whether, we'll be spending this money. We're banking current income against future interests or uncertainties. ~ Another element comes in here. If you have savings, it means you had a surplus of income. I.e., you spent less than you earned. Among our more progressive friends and even relatives, that makes us bad. I.e., we "had more than we needed." I.e., we should be giving it to others. I.e., them or their sprogs. ~ So the entire culture of savings for its own sake has been shredded and remains vital only among those of us who save for its own sake. In the interest of full disclosure, I have no idea why anyone spends money on the holidays; gifts of care, attention, presence, or one's own skills can be given, if giving is important. But again, that Display-Shopping, or American Potlatch, thing is pretty strong among many in the US. ~ While one can argue that layaway is better than credit, it still, as you point out, buys into (!) the idea that money is for spending on Stuff. Maybe at bottom people know that our fiat currency is unbacked and fragile, and only means something when they translate it into something material. ~ Savings represents both the ability to defer gratification and some measure of faith in our currency. I have to say, DHB, there are times when I watch dollar devaluation undo everything we've saved (the hidden tax) and wonder why we didn't go out and buy a boat or a cow or something. But then anything you buy has hidden costs, so the money leaks away anyway. This is why money is a terrible basis for an economic system. ~ rose DHB’s point is crucial: for many, money isn’t worth anything unless it’s specifically targeted for spending. Savings is the largest line item in our monthly budget–more even than our PITI. I’ve talked to so many people who can’t understand why one would have savings, unless it were “for” something.
~
“For” retirement, for instance, which means a massive end-of-life shopping spree. Golf carts, RVs, bionic knees, grandchildren gifts, and so on. That’s considered the aim and goal of a life of work! Having a total cashectomy in a few years or decades of full-time consumption. It’s American Potlatch I guess. But it appeals to me not at all.
~
We save because we save. We have no idea how, or whether, we’ll be spending this money. We’re banking current income against future interests or uncertainties.
~
Another element comes in here. If you have savings, it means you had a surplus of income. I.e., you spent less than you earned. Among our more progressive friends and even relatives, that makes us bad. I.e., we “had more than we needed.” I.e., we should be giving it to others. I.e., them or their sprogs.
~
So the entire culture of savings for its own sake has been shredded and remains vital only among those of us who save for its own sake. In the interest of full disclosure, I have no idea why anyone spends money on the holidays; gifts of care, attention, presence, or one’s own skills can be given, if giving is important. But again, that Display-Shopping, or American Potlatch, thing is pretty strong among many in the US.
~
While one can argue that layaway is better than credit, it still, as you point out, buys into (!) the idea that money is for spending on Stuff. Maybe at bottom people know that our fiat currency is unbacked and fragile, and only means something when they translate it into something material.
~
Savings represents both the ability to defer gratification and some measure of faith in our currency. I have to say, DHB, there are times when I watch dollar devaluation undo everything we’ve saved (the hidden tax) and wonder why we didn’t go out and buy a boat or a cow or something. But then anything you buy has hidden costs, so the money leaks away anyway. This is why money is a terrible basis for an economic system.
~
rose

]]> By: Alan in RTP http://www.doctorhousingbubble.com/main-street-credit-crisis-bringing-back-layaway-for-purchases-the-anti-saving-crusade-continues/#comment-26721 Alan in RTP Mon, 10 Nov 2008 21:22:49 +0000 http://www.doctorhousingbubble.com/main-street-credit-crisis-bringing-back-layaway-for-purchases-the-anti-saving-crusade-continues/#comment-26721 Got that right Bob. The loan sharking that Congress allows at 18% is horrible. Unfotunately there are a lot of folks that don't have a great deal of education, but are we really a society that feels it's OK to prey on the less educated? I don't want to be part of a society that thinks like that. In the end, they will default. Some folks know better and still are foolish, some simply can't do the math. Got that right Bob. The loan sharking that Congress allows at 18% is horrible. Unfotunately there are a lot of folks that don’t have a great deal of education, but are we really a society that feels it’s OK to prey on the less educated? I don’t want to be part of a society that thinks like that. In the end, they will default. Some folks know better and still are foolish, some simply can’t do the math.

]]> By: Soylent Green Is People http://www.doctorhousingbubble.com/main-street-credit-crisis-bringing-back-layaway-for-purchases-the-anti-saving-crusade-continues/#comment-26718 Soylent Green Is People Mon, 10 Nov 2008 20:49:15 +0000 http://www.doctorhousingbubble.com/main-street-credit-crisis-bringing-back-layaway-for-purchases-the-anti-saving-crusade-continues/#comment-26718 Wrong rodent. We aren't hampsters, but lemmings. Personally I think we are all frogs, tucked neatly in our warm pot of water, enjoying it's ever rising temperature...until, "sniff", is that dipping sauce I smell? Wrong rodent. We aren’t hampsters, but lemmings.

Personally I think we are all frogs, tucked neatly in our warm pot of water, enjoying it’s ever rising temperature…until, “sniff”, is that dipping sauce I smell?

]]>