No more credit? Delayed gratification rules...

I worked in high school, made enough money that I could buy a well abused Harley-Davidson as old as I was - seventeen years old. My father helped get it home and we tore it apart to rebuild it - he was flying corporate and could visit old Harley shops around the country and pick up parts - my only talent was sanding and removing old layered paint and holding stuff that needed two extra hands while a bolt was run in or through. It was one of the best things I was doing during those years, and it was with my Dad.

Funny, that threat of no credit to buy cars doesn't mean that much to me. My father bought his last car, used, and paid in cash I guess. His problem with the cost of the car wasn't the total price, what he had problems with was that it cost more than the home he and my mother lived in - inflation is an amazing thing. My first car was used, I was spending all my money on a new wife, not that we had a lot - I wasn't borrowing for that either, paid cash or waited to buy when we could afford it.

The thought of not having people trying to get me on a new credit card, a new car loan, and a new improved mortgage is wonderful. The idea that if I wanted to travel I would have to have a bunch of money in the savings account works well for my wife, she is going to her homeland next year to help rebury family, but it is all cash - she hates it when I borrow money.

Rumor from Asia, there was a general that took charge of his country, wanted to build it up like Japan had done after WWII. He went to America to get some financing, and the Democratic President said NO, there would be no money for dictators. Well, that was the rumor, and so the guy in charge went and gathered all the wealthiest men in his little country. He told them how much money they needed to come up with to start his industrialization program. They listened and thought about it, and then almost decided that they weren't going to find that money. But he was the guy in charge and rumor has it, that they weren't every going to leave that room if they didn't come up with the financing. So they put together a package and left the room and the industrialization began, and the exporting of talented people so they could send hard currency to the home country, the exporting of contractors, engineers, products and ships. They exported a couple of Divisions of military and gained cash from that. The economy grew and the country remade itself from sleepy agricultural to industrial manufacturing. Almost everyone wanted to own a business instead of working rice paddies. I knew he was in charge, but what amazed me was when he declared that rice straw couldn't be used for roofing anymore - they were a modern country and not that poor. So the straw came down and tiles, metal and other kinds of roofing went up. Yep, he was definitely in charge and transformed his country.

I am sure America is much farther along in the development cycle, and losing weight from our flabby self indulgence might be a very healthy thing. Forbes had a list of the 400 richest Americans, didn't it? How much are they going to pay to prop up the Banking industry? Much more than I can, I am sure, I am more consumer than investor. I will keep paying my bills and adding what I can to the Credit Union accounts so they can lend it out. If the man from Omaha can come out and invest money, I am sure some of those other names with too many dollars of worth could, too. Saving banks is a rich man's game, my job is saving my family.

I do know that a major Depression changed a whole generation into savers and 'do without' and 'make do' and pay cash. My grandmother wouldn't allow my grandfather the money for a new car, she was waiting until the bad times returned. Those that don't study History are doomed to repeat it. And for her, once was more than enough.