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> The increased availability of credit, and the increased willingness of markets to give credit to risky borrowers has forced people to extend themselves to the

> The increased availability of credit, and the increased willingness of markets to give credit to risky borrowers has forced people to extend themselves to the max in order to compete for social status. This is optional, though. If you opt in to it, that's somewhat on you. Granted that our social systems could be improved so that natural human tendencies push people toward right actions. However, I think the injustice is far more severe in cases where there's no out that's within a person's power to reasonably grasp. And "the girls at the next table in the bar," don't know about your friend's car or house, unless your friend is an insufferable jerk who carries pictures of his ride in his wallet. And they likely don't care that much either way.

cameldrv 9y ago
The kind of girls you want to settle down with can see through that shit, but it doesn't change the short term problem. The 25 year old with the BMW doesn't buy it because he has some love affair with German engineering, he buys it because it's going to get him girls. America is the land of risk takers and optimists. It's full of people who know how to get in on the next big thing and are going to work to grab it. This all works great as long as credit isn't too available, and when the next big thing isn't as big as someone thought, he can always get a job at the GM plant. The problem we have now is that he gets overextended on his securitized mortgage and has to take a job for $11 at Wal-Mart.
phil21 9y ago
> This is optional, though. If you opt in to it, that's somewhat on you. Sort of. Until you get into asset price inflation - I sure am not looking for anything fancy or social-signaling for my housing, but due to everyone taking out absurd 30yr mortgages and financing to the hilt I'm likely paying 2-3x what they would be if such financial instruments did not exist. So you get to play at least some ball whether or not any of those things matter to you.

cameldrv 9y ago

The kind of girls you want to settle down with can see through that shit, but it doesn't change the short term problem. The 25 year old with the BMW doesn't buy it because he has some love affair with German engineering, he buys it because it's going to get him girls. America is the land of risk takers and optimists. It's full of people who know how to get in on the next big thing and are going to work to grab it. This all works great as long as credit isn't too available, and when the next big thing isn't as big as someone thought, he can always get a job at the GM plant. The problem we have now is that he gets overextended on his securitized mortgage and has to take a job for $11 at Wal-Mart.

phil21 9y ago

> This is optional, though. If you opt in to it, that's somewhat on you. Sort of. Until you get into asset price inflation - I sure am not looking for anything fancy or social-signaling for my housing, but due to everyone taking out absurd 30yr mortgages and financing to the hilt I'm likely paying 2-3x what they would be if such financial instruments did not exist. So you get to play at least some ball whether or not any of those things matter to you.