I just watched the movie The Big Short. It portrays itself as exposing the truth. It exposes the truth about the actions at the very top of the “housing crisis” problem, but it fails to really drive home the scope of the problem. Yes, people at the banks were apathetic, irresponsible, and crooked, and their actions ultimately resulted in taxpayers footing the bill. However, it portrays the other participants in the problem as victims, and I believe this is an injustice.
One statement in the movie in particular clearly emphasizes my point and I want to bring it up because it is so pervasive in our language. They quote a statistic about people being evicted from homes they lived in that banks bought for them by saying, “X million people lost their homes.” No. Those X million people never owned homes in the first place. The first people to be evicted in such a situation are those who took low-money-down, teaser-rate mortgages. That means they never paid a dime for “their” home. That’s the nature of such loans. The bank took a huge chance trying to give them something they never earned in the first place. They were irresponsible and undisciplined enough to take it and not pay. Maybe you could say they were naive enough to take it. Maybe even the loan sharks practically forced it on them. Regardless, they were part of the problem and nothing was taken from them that they actually earned. X million other people weren’t greedy enough to fall for such obvious gimmick loans, remained living right where they were, and happily waited out the crisis watching it on network TV over a new digital antenna.
Is the problem behind us? No. I don’t know what the next “crisis” is, but I know how to survive it. Avoid the following irresponsible, undisciplined decisions: cable TV (yes, that’s right, you will not know what to do with your spare time, see suggestions below), car loans (yes, save up then drive a used car), smoking pot (it makes you dumb and lazy I’ve seen it personally), credit card debt (pay it off by all means necessary especially by quitting the other items on this list), excessive alcohol (quit entirely if you have to).
I’m going to add to the list: ridiculously expensive but worthless college degrees. Students are the latest fad hapless debtor voters for the government to victimize and force taxpayers to bail out. Oh, but certainly education is important! Getting drunk and high for 4 years and talking about your feelings is not an education, even if you pay $35K per year to do it.
Do: read. Information is out there.
Do: exercise. Bad health is expensive.
Of note, they show a guy with a family in the movie who is evicted even though he paid his rent because the owner defaulted. That is truly unfortunate. However, I personally work hard to ensure that those who pay their rent, as is reflected by their credit score, have a safe and stable place to live and pay their rent on time!