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The financial lesson is up to you

Posted: November 5, 2008 5:40 p.m.
Updated: November 6, 2008 4:59 a.m.
 
Can any financial institution make loans or ridiculous offers without a willing purchaser? Second question: Would you invest in a financial institution that showed poor profitability or one that was booming and was very profitable?

No one cares what the financial officers make when you are turning a nice profit on your investment.

What is greed and where does it start? Dictionary definition: An overwhelming desire to have more of something such as money than is actually needed.

What about us? We start with wanting the trendy clothes, beauty enhancements and expensive cars, plus everything our kids need to outshine or keep up with the other kids. (Have you noticed the birthday parties we give our kids?)

We don't have the cash, but we find a way to acquire our wants from financial institutions. (Wants, not needs, equal greed.)

We then graduate to the huge home that meets our expensive wants. We know we don't have the money so we look to a financial institution that will satisfy what we want. (Wants, not needs, equal greed.)

We expect huge profits in a few years on this home. We can live in our new home with the idea that we could use this home and credit cards as collateral when we try to decorate and landscape our dream home.
We look and find a financial institution that will accommodate our wants. (Wants, not needs, equal greed.)

You may not know it, but you are setting the bar for others as others did to you.

We are now paying the price for our extravagances, and so are those who told us we deserved that new home, those new appliances, those big-screen TVs and on and on.

The truth is that we do not deserve anything that we cannot afford. If we cannot afford our needs, then by no means can we afford our wants.

Our parents warned us, but at some point we stopped listening. Don't blame those who loaned us the money! Blame those who demanded higher credit lines, more expensive homes, bigger and better vehicles - and the list goes on.

One thing for sure is that we knew we could not afford that extravagance no matter what the lender said.

We created the monsters with our own greed.

The truth is that there is no shortcut to building wealth.

As we suffer from our poor decisions, the financial institutions suffer proportionately for their greed and poor decisions.

If we are looking for the cause of our financial collapse, we might look within and at all those who told us we should all have things that we knew we could not afford. The choice to purchase was ultimately up to us.
So what are you going to tell your children and your grandchildren about this financial collapse? What is the lesson? I guess it is up to you.

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