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Chapter 3 Notes
Robert's Topics > Chapter 3 Notes > The Name of the Game is Debt
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thatguymark - 3/13/2009 2:34:15 PM
Unrealized potentials of human life
10billion, while I would agree on the point regarding respecting human life, I think we'd do well to consider what that means. Plenty of people enjoy each others company, but that is certainly not the whole story of being human. Part of that respect certainly includes a recognition of the potential people have to be resourceful enough to be responsible. To me the other accomodations could just as easily work as keeping them in their homes, not only are we talking about dependency on government but also psychological dependency that associates a particular house with the idea of home. Frankly I think we have much more strength than we give ourselves credit for, but as it is people are led to think otherwise, as if their psyche is made out of wet toilet paper.
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Sppirit - 3/13/2009 3:48:43 PM
Bailouts and "Tricking the Balance Sheets"
Hi. Personally, I hear the bailout cry as entitlement. And I do agree that the best lessons I learned are when I bailed myself out. I'm in the process of doing that again now. I've made some huge mistakes before I taught myself some financial literacy. Then I had some circumstances along the way that accelerated my learning curve, such as not being employed for 3 months this last summer. When I got down to my last $100 I really understood the pain. I still have a roof over my head, groceries in the fridge and a car to drive. But now that I am employed again, I am doing catch-up, and building a business so that I don't have to be dependent on my W2 job for much longer.

Couple of things: First, I have not really gotten clear on how to convert my bad debt (and I am working on paying it down, but there are obviously ways that I am not aware of). I never learned to budget, never learned about cash flow, until recently. I'm finding out that there are lots and lots of people in my boat, along with me. Where can I go to further my education? (And yes, I play Cashflow....BTW, when are you going to make an iPhone edition like Monopoly???)

Second, would you please go into more explanation about the Federal Reserve? That is fascinating. Almost as much as the stock exchange, ETFs and the SEC (conspiracy).

And then, recently, I was listening to Mr. Bernake testifying to Congress, and he spoke of needing to "trick the balance sheets" when we begin the trough of recession/depression into inflation. Can you provide further insight, please?

Thanks so very much, and I am enjoying this book more than you know.
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marcelo_lascano@yahoo.com.au - 3/13/2009 5:42:28 PM
Same thing with wellfare
In Ecuador a monthly basis income is delivered to people who are enlisted as poor people, with out any compromise as education or looking for a job, just a lifetime bailout that come out directly from our hard work earned money.

So what is the lesson thsi people is learning, just yield for income and you´ll get it, I wouldn´t be any surprise in near future this people handling micro funds on credit cards that will return this money to the banks as income, so finallly the moeny collected from us, will return as earnings to the ones that started all, allies of goverments, the bankers.
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Andrewhex - 3/13/2009 5:43:33 PM
Facing Foreclosure
I also feel bad for people facing foreclosure. I feel terrible for the people that can't pay their bills because the rich intentionally lent them more money than they could afford to pay back. I don't feel so bad for the people that are just bailing on their house because the current value is less than what they owe.

Homeowners really haven't lost any money until they sell their house or get foreclosed. There are many variables here, but if people hang-on there house values will shoot back up because of the money that is being flooded into the system. People that get foreclosed will become renters. Renters pay the landlords. Landlords are buying property for cents on a dollar as fast as they can. Foreclosed middle class families become poor families and the rich landlord gets wealthier.

If the dollar ends up being worth nothing. Then the landlord has a lot of places to hide.
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ajoyflower - 3/13/2009 6:04:25 PM
foreclosure bailout
All it would take right now for us would be one job loss and we'd be in a position that would put us on the path to foreclosure. I know that if we were in a foreclosure situation that the thought of a bailout would be such a relief and I'd vow to not let that happen again ... but I wouldn't have learned HOW to get out of situation so that it wouldn't happen again ... we'd just go back to doing that same thing. It's scary to think about which is why we know we need to do something different that what society teaches. Like you've been saying - giving fish only helps for a moment, we need to instead learn how to fish so that we are helped for a lifetime.
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kaizer113 - 3/13/2009 6:06:04 PM
Foreclosures
I feel foreclosure is sad, mainly for the people that were manipulated into mortgage they could not afford.

I believe most new homeowners have been too optimistic, or too careless about their decisions.

I believe foreclosures should happen, people that can't afford a house shouldn't stay in it. Let the market go down and find its real value.

I also believe that lenders that pushed people into financing they couldn't afford should be partly held responsible. Most people do not have the knowledge necessary, and the professionals making the deal happen should own part of the responsibilities and not look only for profit.

Regards

Lionel
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Marcus Smith - 3/13/2009 8:05:10 PM
Loss of Possessions
I lost my house in Feb. 2007 It was the worse thing I thought could have ever happen to me & my wife. If it hadnt happen to us, we would not be reading your books, studying finance, learning about what real money verses funny money is, and we would never see the national & global economic system for what is really is; a sham. Thank you for writting your books & lifting the veal for the rest to see.
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wordtoterry - 3/13/2009 8:59:15 PM
Learning Life's Lessons
Nobody likes to lose. It sucks. You feel like a loser. You feel like everyone else is wondering how you could muck something up that everyone can easily accomplish, That is what I imagine that people who face foreclosure are feeling. However, if you don't lose, winning is impossible. You can't learn if someone bails you out all of the time. You don't create if someone bails you out all of the time. You stop thinking. You stop striving.
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CreateMoneyforLandJ - 3/13/2009 9:09:01 PM
Requiring Financial Education in Public Schools
Hi Robert,
Thank you for all that you do.

I do believe people should get some help. Until financial education is taught in school from kindergarten up, it is the burden of us all to deal with our educational failures. None of us can "know what we don't know". We must demand financial education from the schools.

What are your thoughts on how the current ground swell of anger and frustration can be directed towards getting financial education REQUIRED in public schools.

My best to Kim,
Amy From California
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glb - 3/13/2009 9:17:51 PM
Chapter 3 0n foreclosures
I am in agreement there with you Robert. In South Africa we have a legislated protection program where the defaulting debtor can be placed under Administration. The problem that I have with this course of action is that to the best of my knowledge the do not get any hands-on training regarding how to deal with finances with the result that once they have repaid their obligations under the Admin Order, that they are right back in debt before they know it and thereby remain in that vicious debt-cycle

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