Quote:
Originally Posted by Due
Good point but isnt one of the problems really that people already struggling could borrow money to buy homes / cars etc and that caused the credit crise as we see it now. Would that have been avoided if energy costs was 25-35% higher 4-5 years ago ?
For the same reason the interest rate from the FED is very low, making the dollar weak and that increase the price of oil.
Nobody wish to invest in the dollar when the rate is so low (ECB rate is double) but if the rate is increased 100 of thousands of homes will be put into foreclosures. Is owning your home / having a car really for everybody? You are paying now a higher costs for energy because someone bought a house they could not afford (multiplied with a couple of millions)
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There are a whole lot of people though that never did anything stupid at all and are suffering from these effects.
I have renters for instance and they are real good kids, yet they struggle their asses off and really have no debt.
My neighbors on other hand bought a house at a damn good deal from owner. Also is not in credit card debt etc. However even despite that they are a dual income family with 1 kid. They are living check to check. Their mortgage however is less than what I charge for rent.