Financial insecurity is one of the staples of American life, and fuel for our nation’s politics as well as cable TV shows. Once the elderly worried endlessly about money matters, athough now people over 65 count as the wealthiest group of Americans. Rather, today the biggest worriers about what’s euphemistically called our “financial future” are the young, and especially people under 25 years old … A day of reckoning is not out of the question; the debt bomb may yet explode, taking American prosperity with it. Housing values are falling, most everywhere now, and that’s perilous for American consumers who, as “In Debt We Trust” shows, have used home-equity borrowing as a piggybank for years. On a national level, the bubble can burst too. The size of the federal debt, and the growing dependence on China to cover this debt through purchases of Treasury Bills, could lead to a collapse in the value of the dollar and a sharp, steep rise in interest rates, choking off the very lending that fuels economic activity and bringing about severe economic contraction, along with job losses and wage declines.”
There are so many issues at play here, I don’t even know where to begin. Luckily, I wasn’t one of those who got into major bad debt during my early twenties. The Wife on the other hand… school loans. Lots of ’em. C’est la vie. The trick now is learning how to capitalize off of debt, and turning bad debt into good debt, which is akin to pulling a rabbit out of your hat: it’s not magic if you know what you’re doing.