Lessons From A Personal Credit Crisis

Tuesday, June 2, 2009, 5:45 AM | 1 Comment

There is an article on forbes.com written by John Tamny, published on June 1, 2009.

The article is about the personal credit crisis of New York Times economic reporter Edmund Andrews.

In the article, John states that Ed bought brick town house for $460,000. The “economic” reporter was making $130,000 a year with take home pay of $2,777 after paying $4,000 alimony to his first wife.

Now Ed wanted to buy a small but stately brick home for his new fiancé and her two kids.

John, in his article, does not say how much monthly mortgage Ed was paying but he does say that $2,777 could barely cover it. I don’t understand why an economic reporter of the NY Times would take a step like that no matter how else the predators of the mortgage industry told him. He should have known better.

Moral of the story
Was Edmund trying to impress his fiancé. The reason I am saying this is that he was already paying $4,000 in alimony to his first wife. What was his logic behind it? If my assumption is correct that he was trying to impress his fiancé, when are we going to put a stop on this silliness? How can we avoid it?

It so happens that on numerous occasions, we try to impress others and in the process, get ourselves in deep shit. Remember O Ye humans! Be warned! The anacondas of the financial swamps are swimming freely looking for prey to wrap around their fat and already swollen bellies and squeeze and suffocate their prey to their financial death. The irony is that the people we seek advice from one day become the prey.

Watch this video about another couple.

Read the story in full: Lessons From A Personal Credit Crisis.

What do you think?
Well! What can I think? Nothing much. I stopped thinking long time ago.

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