I can’t make you wealthy if I am broke!

After consideration, I have come to believe that one of the worst practices that our modern financial system has adopted is the attempt to create wealth by charging large fees.  A late payment fee that is nearly as large as the payment only makes catching up more difficult, and when overlimit fees are added to the late payment fee, the fees are more than the payment.  Very quickly, the balance balloons far beyond the established credit limit, and keeps on climbing.

In accounting terms, the bank is getting wealthier, because it can show the money owed it as an asset.  But is this real wealth?  Is there anything tangible about this wealth, anything that has enduring value?  If I end up going bankrupt, what happens to the wealth that the bank says that they have?  Aren’t we creating an illusion of wealth, which has no substance?  Because debt is considered an asset to the lender, banks have been more than willing to extend credit, because it makes them look wealthier.

Watching a firm with billions of dollars in assets on the books go under should not happen, but when those assets are merely entries in ledgers, there is nothing to pay the light bill.  The worth of the United States has been exaggerated beyond all comprehension, as our salaries have doubled over and over again, the value of our homes shooting up without one lick of work being put into them, and our stock markets recording astronomical prices.  This balloon has expanded so much that no one is really sure just what anything is worth anymore, because we can’t get what we say things are worth when we try to sell them.

The greed has gotten out of control, and it is destroying us.  It does not matter how much you say is owed to you, what you have in your pocket is what there is to spend, because the likelihood of your getting what is owed to you is shrinking fast.

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