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Originally Posted by Hektore
I wish my parent would have taught me good money habits, unfortunately they don't know a whole lot about how to manage money and it's clear from their spending choices. Ultimately, I think that's what this all boils down to. A whole lot of parents(/people), while well intentioned, didn't make prudent financial decisions. When combined with the fact that lenders were making it easier for a bad choice to seem like a good one, you end up in the mess we're in now.
In short - yes, a money management/personal finance course sounds like great addition to public education.
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To some extent I agree with that statement. However I think there's blame enough for all.
IMO, too many people looked at their home as a bottomless money pit, taking out two and sometimes three home equity loans. All too often these loans were used to buy toys. An RV here, a boat there a few ATV's here and there. Ten thousand here and twenty thousand there and soon enough you're taking about real money.
Then there's the folks that decided the home they were in wasn't impressive enough. They needed not 2000sft, they needed 4000sft. Standard run of the mill counter tops and cheap cabinets? Screw that! The neighbors have granite and solid oak! Gotta have that.
And yes lenders were more then willing to line up and lend, lend and lend some more. Often telling people as they signed their ARM that "there's nothing to worry about, the rate won't go up." All while the very contract they were signing stated it would go up, how much and on what date.
There is good news. Well good news for some. Anyone with any cash is likely going to be able to find deals on all kinds of stuff in the coming months. Houses prices are headed south, I doubt they've hit rock bottom. Looking for a rental property? Want a new "toy?" Keep your eye on the classifieds and auction sites. I recently flew north to look at a sailboat, well mainly to visit my daughter and son-in-law. but the boat was part of my trip. Two years ago I looked at the same make and length, the boats were in very similar condition, this one actually had better Nav. equipment. The boat I looked at was being offered at 50% of the one I looked at just two years ago. Once my taxes are done this year I'll likely buy a boat. Though I doubt it will be this boat as the guy I was dealing with was all but begging me to take it off his hands. My guess is by the time I'm ready it'll be sold. If not I'll bet I'm talking to his bank and not him regarding the deal.