2008 going into 2009, BOOM! If you want a history lesson, watch the 'Big Short' movie for a crucial history lesson. The entire United States financial infrastructure almost melted down. Prior to the collapse, I wasn't paying much attention. I was wondering how people earning far less than us were affording these big houses. Turns out the banks were handing out mortgages (mainly not qualified) like they were candy (insuring and selling them off to another who would insure them and then sell them off to another...repeat and repeat and repeat.. In my naivete, I was thinking the housing market was never going to go down. Prices kept going up...Little to my knowledge then, fueled by faulty mortgages. Me, being the financial genius (tongue in cheek), bought near the peak (my latest properties). Collapse. Wells Fargo, Bank of America, JP Morgan Chase, Citi and the other big banks and investment firms, General Motors, AIG and many other 'Too Big to Fail' got their bail out. No bail out for this total fool.
PAUSE, further film review, I went from sole provider with a very comfortable living to owning and borrowing for a lot of crap. After the Great Recession I went to about 50% of the cash flow to cover it. BTW, that includes Lori’s job! Worse yet, when times got tough, I neglected finances. Put my head in the sand. My ignorance/recklessness almost destroyed our marriage. In fact, I'm still not out of the woods yet. The rest of the story will be shared someday. For now, I had to make some painful changes. Lori 'chose' to stick with me for poorer. In this day and age, that is not easy. You may even say it is rare. Heck, even when you're the richest couple in the world (see the Bezos/Amazom.com) they divorced. When I have my A game, I give thanks for her everyday and ask here "What can I do for you today?". For those that know Lori, she is a beautiful woman. This was not her fault. She easily could have divorced me and found a much wealthier man that could give her that big house and new vehicle.
Pause: film review, mark my words. If Lori and I didn't have Jesus Christ as our foundation, all those Sunday sermons and our blessed couples' small group, we would not be married today. Check Matt 7: 24-27.
So for those versed and Deeper, you know the Bible (the Owner's Manual) says, if you are in debt, you are slave to the lender. Proverbs 22:7 (NIV), “The rich rule over the poor, and the borrower is slave to the lender.” You don't feel like a slave when times are good and you can pay everything monthly and have surplus left. Try missing some payments, compound interest can be a bitch and you don't own jack sh#!
Pause, film review. For those striving to save and give more, compound interest rates can be your best friend or your worst enemies. You ever notice which buildings are the tallest in your cities? Whose names are on the majority of the stadiums: Wells Fargo, Bank of America, Chase, etc. All fueled by the power of compound interest rates that drive your loans. As long as you pay your bills, they will lend you more. More money for them, less money for you. BTW, if you think this is some side tangent of hate for financial institutions, wrong. Some of you work for them. Just be wise. Understand they are in the business to make money. The more you borrow, compound interest rates can build you a 'Hell Scraper'. Gulp, I don't know. What is the opposite of a sky scraper?
Back to my mess...
