Originally Posted by Ground&Pound  Good point.
By definition, a competitve (capitalistic) economy has winners and losers.
The less losers a society can stomache is directly proportionate to how socialistic the society will be.
I think America is becoming more socialistics each year.
As a society, Americans hate seeing poor and homeless people. |
No definition exists that declares there must be winners and losers in a capitalistic economy. In fact, the opposite is true!! A market is made when willing sellers meet willing buyers. A transaction is made when seller and buyer agree -- thus each party gets what he wants. By definition, a market economy is full of winners and has NO losers!
I do believe that America was becoming more socialistic, but I think that may be making a turn-around. People are understanding that government is slow, inefficient, and a poor money manager. They see that the government can't run a retirement plan like Social Security nearly as well as they can run their own IRAs. They see that airlines and phone service have become more affordable and have more options after deregulation. They also seem to want more control over themselves and a larger say in how their own lives turn out -- so they want less government intrusion into their lives.
I'm not really worried about home equity loan debt, though. The possible worry here is that if someone sold his home, he may not have enough money to pay off his mortgage AND the loan. But many borrowers pay off the loan before selling anyhow, so Big's article makes a mountain out of a molehil. That article was just another example of New York Times sensationalism. That paper is looking and reading more and more like a tabloid and a lot less like an actual newspaper.
Americans owe $1.1 trillion on home equity loans 
Linear Mode
