Quote:
Originally Posted by WSSix
I've been hearing people talk about us being in another bubble and that it's only a matter of time before it pops. I'm not surprised people are taking on more debt that they should. We're a very materialistic society. I won't get into that trap. I'm sure someone could show me how I can leverage the cheap lending situation to make more money for myself, but I'm not interested in putting myself at that much risk.
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This is what people don't understand about "leverage" (borrowing and having to pay back that borrowing) -- is the RISK they're assuming. The more stuff people own (the banks own - the people are making payments) the more risk they've taken on -- and when a recession hits - or the company downsizes - or is bought / acquired.... That risk multiplies in a HUGE hurry.
That is when the old saying "cash is king" comes into play! I've made the most money in the biggest downturns. You can get houses cheap - apartments cheap - stocks cheap.... LOL