Thursday, July 10, 2014
Fight Back against the Big Banks!
Since the housing industry debacle of a few years ago, the banking industry has had a public relations problem. Their reputation has suffered and people are tired of the shenanigans of the powerful bankers who manipulate people. Not all bankers are bad, but those who came up with the sub prime mortgage schemes that almost led to a worldwide financial collapse a few years ago are despicable. Fraudulent mortgages were bundled together to make derivatives that people could bet on. They were called CDOs or collateralized debt obligations. The ratings services like S&P and Moody's were bribed to give them top ratings even though they were poor investments, the equivalent of penny stocks. Learn more about this in the documentary "Inside Job".
Anyway, the best way to fight back against the banks is to not give them your money. When we borrow money and pay interest, we help the banks. Learn to buy things only when you can pay for them one hundred percent. I heard a caller on Dave Ramsey's radio show who paid off $750,000 worth of debt. This was made up of student loans from medical school, a mortgage, credit card debt and more. It took him eight years of sacrificing, but he did it. Now he has zero debt payments of any kind. Imagine the feeling of freedom if you had no house payment, no car payment, no student loans, no credit card debt, etc.