Re: Debt (Was: How much is a FICO score worth?)

HW "Skip" Weldon wrote:

> I mention this just in case someone thinks that because of our
> emphasis on FICO scores, it is acceptable to have debt.  For the
> record, we can make exceptions for younger folks who haven't had time
> to pay off their home mortgage.  Beyond that, no.
> 
> I realize that some folks will say that their investments are earning
> more than their debt and they don't want to pay off their
> indebtedness.  To them I respond if they cannot BOTH invest and be
> debt free, then they are not living within their means.
> 
> That's admittedly tough.  But then that's why there are so few
> multi-millionaires.
> 



Here's an interesting explanation about debt and the money supply 
(warning, it's 47 minutes long.)  I already knew everything (history 
lesson) in the first half, but the analysis in the second half is scary, 
even if you don't believe the final conclusions the author makes.

http://video.google.com/videoplay?docid=-9050474362583451279

(I like the part about the total amount of money available to service 
all the debts is smaller than that total of those debts plus interest, 
so a certain default rate is mathematically part of the system)

Best regards,
Bob

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