Being broke sucks

There are many stories of late about people balking against tough choices needed to remedy their financial duress. Yes, being broke sucks.
But at the end of the day, laws of gravity do apply, and we humans must accept, adapt and move forward. These are remarkable times: the past couple of decades of falling rates and credit expansion have trained us to expect a high level of service and lifestyle that in many cases we can simply no longer afford. Actually one could argue that we never could afford some of these things, but thanks to 'credit magic' we were able to pretend otherwise for a good long while. It turns out, things weren't different this time; the piper has come for his payment.
See Bloomberg: German Politicians want Greece to sell islands.
And NY Times: As Budget cuts free prisoners, states face a backlash Remember all that hard-right crack down on crime under Bush Jr? Turns out most States can no longer afford the incarceration.
I am reminded of many real life examples over the years, where a bankruptcy or divorce, death or other misfortune suddenly demand a large financial reckoning to a family or individuals. Yard sale-like auctions of prized possessions are the norm. The initial response is usually always one of disbelief or outright rejection: “This is ridiculous!” “Over my dead body!” “I won't stand for it!” In the end, we all do what we must to change unsustainable habits and get back to the work of digging ourselves out and up. There are tough choices all around. But after stomping of feet and gnashing of teeth, the only solution is to cut the artifice, admit the mistakes and get back to honest, hard work.–the sooner the better. No more cake and eat it too. We have to give to get; and yes its hard to do.

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3 Responses to Being broke sucks

  1. Anonymous says:

    More trouble coming in US banking sector
    http://globaleconomicanalysis.blogspot.com/2010/03/construction-developer-says-banks.html
    Meanwhile stocks are up today because (allegedly), amongst other things, a solution to the Greek sovereign debt crisis may be at hand. All this while violent riots are occurring in Athens. Are we living in the twilight zone or what?

  2. Anonymous says:

    Lower rates that created “the good life” for the spendthrift majority also caused LESS income for the much less common yet still out there SAVERS (many of whom are now reaping ZERO income if they are in a money market or similar savings account). And as to the high cost of incarceration mentioned by Daniel in this post, I am reminded of Ross Perot's pithy observation that instead of paying $36,000 a year to incarcerate each of these people, it might be smarter to send them to Harvard. I don't think that Perot meant what he said literally, but I think his point put an interesting perspective on how we administer justice.

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