I.O.U.S.A

[rn79870]

Interesting movie to debut Aug 21. -I.O.U.S.A-

A private-equity billionaire, a former federal government official and a Baltimore newsletter editor have made a documentary film that they hope can do what an endless parade of policy papers has not: Persuade Americans that debt has created a looming economic crisis that would make the Great Depression look like a market correction.

The movie, "I.O.U.S.A.," debuting Aug. 21, is an 87-minute alarum on what it calls the tsunami of debt bearing down on the United States' future, caused by the rising national deficit, the trade imbalance and the pending costs of baby boomers cashing in on entitlements.

Early reviewers have dubbed the film "An Inconvenient Truth" for the economy, meaning it's not exactly the feel-good movie of late summer 2008.

Except for budget wonks in love, it hardly counts as a date movie. The film's thrilling action sequence has a guy going to a refrigerator for a Tab. There are no car chases and nothing blows up.

Read the whole story here...http://www.washingtonpost.com/....html

This is a must watch for me.

[smockers83]

I will definitely have to watch this. One of the things that amazes me is how many people will finance their lives through ways of credit/debt. As I'm looking for a job in the financial services industry, what I would really like to do is help people eliminate their debts so they can actually retire and be debt free a lot sooner than what they would normally be, whether that's mortgages or revolving debt. If you're in debt, you're never going to retire because you'll be so far behind. So I've taken up a part-time job doing just that, hopefully turn that into a full-time 1099 job and make oodles of cash.

[themadscientist]

My sole debt is a 2K loan I just took out for my new truck. I could pay it off as simple as moving cash. I don't like debt.

[JerodKing]

My sole debt is a 2K loan I just took out for my new truck. I could pay it off as simple as moving cash. I don't like debt.

Make sure you know the difference between "good" debt, and "bad" debt. I am 25k in the hole with my college education, and I could pay it off alot sooner than 10 years, but having liquidity now is more important, and the interest is tax deductable, much like a mortgage. Plus these nice low rates are helping me too .

To the topic at hand, I believe getting the national debt under control should be one of our top priorities (Iraq and Energy independance the other two). This debt is going to crush America if we don't do something about it soon. We need to cut spending somewhere, and start paying this down. My plan would be once the war in Iraq is "over" (to the extent we are not spending 500 billion), put all that money that is going to that towards the national debt, don't swirl it around into other programs, pay off the national debt. Also, stop giving politicians cars to drive, making as much as they do can give them the ability to afford their own car. They can claim mileage just like I do, and get a tax deduction for it on their personal car. And I read an article in the Pittsburgh Post Gazette the other day, ONE government official has two personal drivers, and their combined salary is over 120K a year. These types of government spending need to go, so we can start paying down this CRIPPLING debt.

[96Qowner]

You bring up a good point about good debt and bad debt.

People forget that debt is meant primarily for investment into profit-making or expense-saving purposes. It's NOT good for making up temporary shortfalls with no investment into expense-savings. If you don't adjust your budget after you take on debt, you've only burdened your future. Since most people earn more in their future, it tends to work out alright, but if that doesn't happen, bads things occur.

A national economy is quite a bit different than a personal one, but that same principle applies. Debt is just fine for future savings or to produce more revenue. But we haven't been doing that. Either we have to reduce the expenses of the Federal Government, or we have to produce more tax revenue from the economy. Simply raising tax rates won't do that - that'll suppress the economy. We have to stimulate the economy and reduce Federal expenses. If that requires debt, that'll be good debt.

[skylndrftr]

especially given that not having debt actually hurts your credit score...making it harder be given...debt

[rn79870]

especially given that not having debt actually hurts your credit score...making it harder be given...debt

Isn't that ironic. Too little debt or too much debt drops your score. In fact, consumers who pay off credit cards monthly to avoid interest charges are referred to as "deadbeats" by the credit card companies. Silly world we live in.

[smockers83]

Isn't that ironic. Too little debt or too much debt drops your score. In fact, consumers who pay off credit cards monthly to avoid interest charges are referred to as "deadbeats" by the credit card companies. Silly world we live in.

It is ironic. However, if there's little debt to judge your credit worthiness from, they really don't know how trustworthy you are with their money. They're deadbeats because each month they get a free loan and the CC companies don't make any money off of them except for the service fees charged to the payees.

[skylndrftr]

I know what your getting at smockers,

but lets use the only example I have (me),First job at 14college degreeworking on advanced degreemade every rent payment in every apartment i have ever lived in on time.I pay my bills each monthI have a retirement accounthad one overdraft fee charged to my bank account (incorrectly)

guess which of these are on my credit report?

Its a load of crap, its a misconception popularized by companies that make their living off interest. Paying my CC makes me anything but a deadbeat, it simply makes me a non-profitable customer. Its sad when those get treated as the same thing.

[smockers83]

If someone turns you down because you have little or no credit, go out and get a credit card and buy something each month on it, like groceries or something. Don't go out of control with it, just take something in your budget and start paying it with a credit card instead. Or if you have kids, get them a card once they enter college and say its only to be used for certain things and you could even have the bill come to you. This just helps them build up credit so that when they graduate and need to get a loan soon after, they have some good standing in their name.

Some bills should be on your credit report. Rent, not so much. Lessors can pull credit scores to check worthiness, but if they want rent payment history, they have to call your previous properties. Your bank account shouldn't be on there as its not a line of credit, a charge though may show up, not sure why (of the very few I have, they don't show up on my report). If you received financial aid for your degrees, those will be on your report, but retirement accounts, employment history, any of that sort won't be on your report. I just saw last night how your score is computed, but I forget all the categories and percentages, shows how much I was paying attention I guess haha.

[skylndrftr]

yeah I'm pretty up to date on it...it just bothers me a lot how they calculate it because it basically comes down to I have to create and carry debt for the next 3 or 4 years to be able to buy a house. WTF kinda system is that.

My point was more of, I pay my rent, I pay my bils, I have a retirement account and no student loans...so why is debt better than that when I want a house or car loan.

More of a *****/rant than any attempt to have a discussion on it . I just think its a f'ed up system