Who would have anything without credit? Who do you know that would have a house or car without credit? Not many I guess. Living the dream. Have what you want. Here and now.
The original credit is probably exemplified in the pawn shops of today. To get a loan you needed collateral. You had to put something up of greater value them the cash or credit you received in order to make the deal. If you could not or would not repay the loan the lender had something that they had an opportunity to sell and make a profit. Or pay the interest and get your collateral back. A pretty foolproof means of credit. Put and Take was a place in Booneville, Indiana. They did a little of everything. You could buy hardware and firearms. Get a haircut. Have backhoe work done. Buy lumber. Have a well dug or get your septic tank fixed. Kind of like Larry, Darrel and Darrel on Bob Newhart. Anything for a buck.
In the big picture everyone relies on credit. Ever wonder why big banks are so excited about you cashing your $300 paycheck with them? It is because banks loan each other money overnight at a real low rate. That however adds up in the big picture. So XYZ bank in the United States loans a European bank a half a billion dollars for a real low interest over night. Then the next day the European bank loans the same bank an amount too. So they both make money. The rate is low but when you are dealing with billions of dollars it adds up.
Insurance companies own a lot of the banks. Insurance is a big cash flow factor. As most of us are obligated to have insurance. It is the law. So you have to have auto and now health insurance. So this makes a good cash flow again.
Now we can get credit cards from most stores. This is what gives them business. To a certain extent credit is a good thing. Governments rely on credit. That is why we as the United States owes so much to China. The European Union keeps things going there. Mostly Germany bailing everyone out. Maybe France sometimes also.
But at any rate, where would the world be without credit? Well not so many of of would have the things that we think are essential. Would you be able to buy a car or house for cash? Probably not. Do you pay cash for the clothes you wear? How about appliances, jewelry, hair cuts or even food? Furniture. Even medical care now. I had to finance dental work. Even heart surgery. After what the insurance would pay. I do however feel that the doctors are supposed to settle for what the insurance companies agree to and the extra is just gravy to them. I feel that we just need to go to a total socialized medicine program like all of the European countries have. Ultimately cuts the cost and confusion. It would however ruin the insurance and bank deals in the United States. Doctors make an lot of money. But do pay a lot for malpractice insurance. So if we went to socialized medicine. Pay them a wage they deserve and not have to pay $500,000 a year in malpractice. I am getting tired of going to a doctor and paying up front for basically nothing.
So if it were not for credit most of of would have hardly anything. Unless you rent you would have to pay for all of your appliances. Do you have enough cash on hand to pay for everything? I just paid for food on a credit card as I have paid so much for medical. You cannot and will not beat this battle if you cannot pay cash.
By the way. I do hope that President Oboma stays out of the Russian thing. He just has a no win situation against Putin. Putin is sharp and we should just let it go. It is not our battle. A civil war. Let them work it out.
Friday, February 13, 2015
Credit
Who would have anything without credit? Who do you know that would have a house or car without credit? Not many I guess. Living the dream. Have what you want. Here and now.
The original credit is probably exemplified in the pawn shops of today. To get a loan you needed collateral. You had to put something up of greater value them the cash or credit you received in order to make the deal. If you could not or would not repay the loan the lender had something that they had an opportunity to sell and make a profit. Or pay the interest and get your collateral back. A pretty foolproof means of credit. Put and Take was a place in Booneville, Indiana. They did a little of everything. You could buy hardware and firearms. Get a haircut. Have backhoe work done. Buy lumber. Have a well dug or get your septic tank fixed. Kind of like Larry, Darrel and Darrel on Bob Newhart. Anything for a buck.
In the big picture everyone relies on credit. Ever wonder why big banks are so excited about you cashing your $300 paycheck with them? It is because banks loan each other money overnight at a real low rate. That however adds up in the big picture. So XYZ bank in the United States loans a European bank a half a billion dollars for a real low interest over night. Then the next day the European bank loans the same bank an amount too. So they both make money. The rate is low but when you are dealing with billions of dollars it adds up.
Insurance companies own a lot of the banks. Insurance is a big cash flow factor. As most of us are obligated to have insurance. It is the law. So you have to have auto and now health insurance. So this makes a good cash flow again.
Now we can get credit cards from most stores. This is what gives them business. To a certain extent credit is a good thing. Governments rely on credit. That is why we as the United States owes so much to China. The European Union keeps things going there. Mostly Germany bailing everyone out. Maybe France sometimes also.
But at any rate, where would the world be without credit? Well not so many of of would have the things that we think are essential. Would you be able to buy a car or house for cash? Probably not. Do you pay cash for the clothes you wear? How about appliances, jewelry, hair cuts or even food? Furniture. Even medical care now. I had to finance dental work. Even heart surgery. After what the insurance would pay. I do however feel that the doctors are supposed to settle for what the insurance companies agree to and the extra is just gravy to them. I feel that we just need to go to a total socialized medicine program like all of the European countries have. Ultimately cuts the cost and confusion. It would however ruin the insurance and bank deals in the United States. Doctors make an lot of money. But do pay a lot for malpractice insurance. So if we went to socialized medicine. Pay them a wage they deserve and not have to pay $500,000 a year in malpractice. I am getting tired of going to a doctor and paying up front for basically nothing.
So if it were not for credit most of of would have hardly anything. Unless you rent you would have to pay for all of your appliances. Do you have enough cash on hand to pay for everything? I just paid for food on a credit card as I have paid so much for medical. You cannot and will not beat this battle if you cannot pay cash.
By the way. I do hope that President Oboma stays out of the Russian thing. He just has a no win situation against Putin. Putin is sharp and we should just let it go. It is not our battle. A civil war. Let them work it out.
The original credit is probably exemplified in the pawn shops of today. To get a loan you needed collateral. You had to put something up of greater value them the cash or credit you received in order to make the deal. If you could not or would not repay the loan the lender had something that they had an opportunity to sell and make a profit. Or pay the interest and get your collateral back. A pretty foolproof means of credit. Put and Take was a place in Booneville, Indiana. They did a little of everything. You could buy hardware and firearms. Get a haircut. Have backhoe work done. Buy lumber. Have a well dug or get your septic tank fixed. Kind of like Larry, Darrel and Darrel on Bob Newhart. Anything for a buck.
In the big picture everyone relies on credit. Ever wonder why big banks are so excited about you cashing your $300 paycheck with them? It is because banks loan each other money overnight at a real low rate. That however adds up in the big picture. So XYZ bank in the United States loans a European bank a half a billion dollars for a real low interest over night. Then the next day the European bank loans the same bank an amount too. So they both make money. The rate is low but when you are dealing with billions of dollars it adds up.
Insurance companies own a lot of the banks. Insurance is a big cash flow factor. As most of us are obligated to have insurance. It is the law. So you have to have auto and now health insurance. So this makes a good cash flow again.
Now we can get credit cards from most stores. This is what gives them business. To a certain extent credit is a good thing. Governments rely on credit. That is why we as the United States owes so much to China. The European Union keeps things going there. Mostly Germany bailing everyone out. Maybe France sometimes also.
But at any rate, where would the world be without credit? Well not so many of of would have the things that we think are essential. Would you be able to buy a car or house for cash? Probably not. Do you pay cash for the clothes you wear? How about appliances, jewelry, hair cuts or even food? Furniture. Even medical care now. I had to finance dental work. Even heart surgery. After what the insurance would pay. I do however feel that the doctors are supposed to settle for what the insurance companies agree to and the extra is just gravy to them. I feel that we just need to go to a total socialized medicine program like all of the European countries have. Ultimately cuts the cost and confusion. It would however ruin the insurance and bank deals in the United States. Doctors make an lot of money. But do pay a lot for malpractice insurance. So if we went to socialized medicine. Pay them a wage they deserve and not have to pay $500,000 a year in malpractice. I am getting tired of going to a doctor and paying up front for basically nothing.
So if it were not for credit most of of would have hardly anything. Unless you rent you would have to pay for all of your appliances. Do you have enough cash on hand to pay for everything? I just paid for food on a credit card as I have paid so much for medical. You cannot and will not beat this battle if you cannot pay cash.
By the way. I do hope that President Oboma stays out of the Russian thing. He just has a no win situation against Putin. Putin is sharp and we should just let it go. It is not our battle. A civil war. Let them work it out.
Thursday, February 5, 2015
Statistics Are Statistics
Statistics according to the American Heritage Dictionary is as follows. The mathematics of collections, organization, and interpretation of numerical data; especially, the analysis of population characteristics by inference from sampling.
This did not really seem like a big deal class in college. But it is what rules a lot of every ones actions. What you wear. What you eat. Which will in turn create trends. The actions we take. The things we do.
Statistics take a long time. Or used to. As some one would have to track the movements and preferences of individuals and ultimately a mass. For the last hundred years we have lived into this wave. So as a race we are like sheep.
I really do not guess that there is nothing wrong with style. I like style. Although my style may differ from your own. You can be iconoclastic. It is OK. As long as you do not do anything to hurt anyone else.
This did not really seem like a big deal class in college. But it is what rules a lot of every ones actions. What you wear. What you eat. Which will in turn create trends. The actions we take. The things we do.
Statistics take a long time. Or used to. As some one would have to track the movements and preferences of individuals and ultimately a mass. For the last hundred years we have lived into this wave. So as a race we are like sheep.
I really do not guess that there is nothing wrong with style. I like style. Although my style may differ from your own. You can be iconoclastic. It is OK. As long as you do not do anything to hurt anyone else.
Statistics Are Statistics
Statistics according to the American Heritage Dictionary is as follows. The mathematics of collections, organization, and interpretation of numerical data; especially, the analysis of population characteristics by inference from sampling.
This did not really seem like a big deal class in college. But it is what rules a lot of every ones actions. What you wear. What you eat. Which will in turn create trends. The actions we take. The things we do.
Statistics take a long time. Or used to. As some one would have to track the movements and preferences of individuals and ultimately a mass. For the last hundred years we have lived into this wave. So as a race we are like sheep.
I really do not guess that there is nothing wrong with style. I like style. Although my style may differ from your own. You can be iconoclastic. It is OK. As long as you do not do anything to hurt anyone else.
This did not really seem like a big deal class in college. But it is what rules a lot of every ones actions. What you wear. What you eat. Which will in turn create trends. The actions we take. The things we do.
Statistics take a long time. Or used to. As some one would have to track the movements and preferences of individuals and ultimately a mass. For the last hundred years we have lived into this wave. So as a race we are like sheep.
I really do not guess that there is nothing wrong with style. I like style. Although my style may differ from your own. You can be iconoclastic. It is OK. As long as you do not do anything to hurt anyone else.
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