Angela Economics

I will be the first to admit that I know NOTHING about the stock market, Dow average, American economics, or sub prime mortgages. I took one Economics class while at Texas A&M and the only thing I learned was what an "Opportunity-Cost situation" was. And, believe me, I live most of my days in the opportunity-cost dynamic. A perfect example is this: is the opportunity to participate in the Body Shaping class worth the cost of puking afterwards? To which I mentally yell, "Hell no!" and I, once again, thank my lucky stars that I was forced into that Economics class my freshman year.

Back to the main point...... most of my financial information comes from Dave Ramsey, and I often find myself texting Cody to say: Dave just said we need to put 15% into retirement...do we do that? To which Cody will reply: yes, and I could invest a lot more if you'd quit shopping. And thus goes the conversation......

In the past few days I've been reading a lot about these investment banks that are failing due to sub-prime mortgages, and that got me wondering things that my mind has no business wondering about because it will inflict serious injury on my temporal lobe. So here's my silly, mush-brained question about this situation: if sub-prime mortgages are causing so much grief both to consumers and to the lending institutions--why were the loans given in the first place?

If Sally and Bob can't afford the $450,000 house right now....why give them the loan for it? Why don't Sally and Bob wait and save up money? Or better yet, why don't Sally and Bob go for a smaller, less expensive home? I don't get why America is having to bail out people who are in financial crisis because they can no longer afford their massive house payments. I don't get why banks offer crazy financing options to try to "make it work" for the next five years and then start huge balloon payments, only to find that thousands of people cannot afford the higher payment. Really, people, am I missing something here?


Cody and I live in a very modest home--nice, but modest. And while there are many moments when we feel like jumping the gun and buying or building our dream home, we know that the only way we'll do it is when we've saved up enough money to afford it. Not with the bank's crazy financing.....not by using our retirement....not by dipping into the kids' college fund....but just by good ol' earning and saving.


Cody and I both had some pretty significant debt when we first married, and with Dave Ramsey's help and a little discipline, today we've got zero debt. Zippo. Zilch. I hope this doesn't sound boastful, but I am quite proud that we have accomplished a goal that many people will spend their entire lives trying to reach. It's just not the "American way" is it? It's counter-culture to be debt free and live within or below our means....and we love it.

Now I need to let you know that part of the reason we live like this is because Cody's job is 100% commission.....which means that on any given month his paycheck could be $25. Then I would be forced to find a job that pays well.....at night......because I want to stay home with my children. The only job I can think of that meets these two requirements is a job that involves dancing and a pole--and I'm just not going to do that. But I digress......

Listen, I know you don't visit this blog to get financial lectures or economic lessons, so I apologize for the uncharacterisitc subject matter. Actually, I'm just trying to prove that SuperMom has a little depth and can think about things other than filling juice cups, wiping hineys, or upcoming vasectomies. I just want you to know that if any of you are currently struggling with debt, you should really check out Dave Ramsey's website. He has a book and a radio show (check your local listings.....I've ALWAYS wanted to say that!!), and he has literally changed the lives of so many families in America. And if the Democrats do what I think they're going to do if elected (raise taxes) we'll all need to find ways to make our dollar stretch.