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Debt and consequence part 2

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Sep. 29th, 2008 | 10:21 pm

I am considering ways in which I might be fucked more than I am at the moment by the upcoming events-that-I-do-not-fully-understand in the banking system. (I am reassured by the fact that actually, nobody seems to understand them, even if their salaries are a thousand times mine.) I have no debts, really, no credit card, no loans, no mortgage, nothing; I also have no investments, no pension... well, okay, I have money in the bank which I suppose counts, but nothing huge. Neither a borrower nor lender I am.

None of this makes any difference. The people who would be paying me undoubtedly do have debts and investments, likewise those who I will be paying, my landlord, shopkeepers and so on. I will need to get money from one to pay the other. I am still at a loss as to how I have been at all sensible in not getting into debt.

Still, you know, I am a middle-class white man in a prosperous country, out of all the people in the world who will be fucked by this I will be one of the last to go.

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Comments {2}

The Princess of Id

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from: danaseilhan
date: Sep. 30th, 2008 12:54 am (UTC)
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My little girl's dad's bank is about to die. I'm trying not to think too hard about it. He at least has access to two credit unions, one through his employer and the other by virtue of living in Franklin County, Ohio.

Another bank that's going is Wachovia. I had an account at that bank in the mid- to late nineties when I was married. More recently they had set up a nifty little program where they socked away a dollar into your savings account for each debit card transaction you made through your checking account with them. I figured they'd be around forever.

I'm going to guess most credit unions will probably come out OK unless some arcane regulation bites them in the butt or the collapse hits them domino-style. Also, I don't see ING Bank going anywhere, they're too finicky about the types of customers they take on. They dropped my savings account with them because they checked my credit report and discovered I was a financial lamebrain. They did issue ARMs, though, so who can say.

I am in debt, but I doubt it'll make much difference. The worst debt is the student loan and all they can do is get the federal government to garnish my tax refunds. I don't make any taxable income. School isn't going to make any difference for a while because who's hiring, anyway?

That said, this could affect things like whether I can stay in this nice new (to me) apartment I just snagged last month. New building owners do not have to honor existing leases. But that kind of stuff I try not to think about.

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Consequences

from: anonymous
date: Sep. 30th, 2008 08:49 am (UTC)
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Everything (and I mean everything) will be much more expensive. You will be working out: should I eat or should I stay warm? Should I go to place X or stay home? There will be a lot of people out of work and more social unrest as more young people lounge about with nothing to do. The online world will contract - fewer people will be working on and in virtual worlds because the capital behind them will have shrunk and banks will not be lending to anything other than groups with gold bars.

On the upside, there is still freecycle and, if anything breaks or you need any building work, there will be people able to fix it NOW. And, just possibly, the US and the UK will bail out of Iraq.

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