Re: How do Americans find TIME to go to conventions?

Keith F. Lynch <kfl@xxxxxxxxxxxxxx> wrote:
<rkshullat@xxxxxxxxxxxxxxxxx> wrote:
I think a substantial fraction of the population, at least in the
US, spends to the limit of their income and a bit more.

I keep hearing this. But then how does anyone ever make a down
payment on a house? And how does anyone have any retirement savings?

One way is to buy on credit so that you can save up the cash for the
down payment. And, of course, I didn't say everyone was spending to
their limit. But I know a lot of people who do...

If it's true that the average person is in debt, that would imply that
the net value of the world is negative and hence that it would be a
net benefit to blow it up.

There's a difference between cash flow and debt. It's possible to have a
large positive net worth and still not be able to make all of the
required payments. Imagine owning a home and losing your job. Your home
may still be worth three times what you owe, but suddenly you don't have
the money to pay for it. And the amount you owe is a positive for
whoever owns the note, since they have a lien on a property that's worth
three times the amount owed.

Robert
--
Robert K. Shull Email: rkshull at rosettacon dot com
.

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