"Karl Denninger" wrote in message
news
d_dd.36189$bk1.12485@fed1read05...
In article ,
Short Wave Sportfishing wrote:
On Thu, 21 Oct 2004 20:34:20 -0400, Wayne.B
wrote:
On Thu, 21 Oct 2004 21:35:07 GMT, "NOYB" wrote:
The DRUDGE REPORT has obtained O'Reilly accuser Andrea Mackris'
financial
records which show a combined debt of nearly $100,000!
Who cares?
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Damn. If she's "living way beyond her means", then *I'm* in deep ****.
$100k in debt? That's it? I'm in the hock for about a million-five.
You must be among "the rich" that everyone in politics is always
talking about. :-)
No one else could owe that much - who would lend it?
You would be surprised. We sold our house up on Webster Lake this
summer for mumbelmumbletyillion and with less than 5% down, the couple
got a "jumbo" mortgage in about the same time as a regular mortgage.
Neither one of them were great shakes in the wages department - he was
a wage/contract attorney for an insurance company and she was a
paralegal with a local attorney. People are betting that in the long
run, they will win the inflation lottery.
The broker told us that, while not common, they aren't all the
uncommon either.
Yep.
Real estate is driving it.
If you can collateralize it, you can get the money.
But that's not truly "in hock", because there are assets backing the
note(s). If you don't pay, they take the house.
More likely, they'll rework the loan to an interest only or negative am loan
until you can pay.
Credit card debt is unsecured. But I've seen card issuers do absolutely
crazy things, particularly if you shop around to the different issuers
and take out as many cards as you can.
I pay off debt on depreciating assets as rapidly as possible. Credit cards
get paid off in full every month. Conversely, on rapidly-appreciating
assets (like my house), I see no problem in paying as little principle as
possible.
Its not hard to run up $30k in credit card debt on a $100k salary - the
issuers will let you do it, although its suicidal for them since there's
not a snowball's chance in hell they will get it all back.
Unless your home appreciates enough to draw a line of credit against it.
I know someone who had income of about $25k who was able to run over $35k
in card debt before the issuers caught up with them and it got ugly.
And no, they didn't own a house either - they were renting!
It's crazy. The banks will lend people money on an unsecured item like a
credit card, but probably turned that guy down for a secured home loan.