Jim Follis

During this depression, there have been some heart-wrenching losses. People have lost their houses, their businesses and their jobs. I really don't know my facts, but I suspect that Sequim has not been any better off than other communities.

And as awful as some of the losses have been, economic pundits keep reminding us that this recession/depression thing is a natural process of readjusting. Things just couldn't have continued - "business as usual."

Perhaps some of us who have applied for loans in the past and got turned down should be thanking someone instead of complaining. How many people do you know who are searching for money so that they can start a business or launch a new product?

Just a year ago, they could have gotten virtually any amount of money they wanted. They could have borrowed money against their house, their wife, their dog, let alone their future "maybe" profits.

I recall an occasion when I was too young to know better but just old enough to think I knew everything. I wanted to buy a car "on time." My dad was beside himself. "Are you crazy? Do you know how much money you are going to just throw away because you are too impatient to save up enough to buy a car like the rest of the world?"

"And where is all this money going to come from to make those payments? And, is the car going to last as long as the payments? Besides that, are you going to take another job in case you need to pay for repairs, new tires and insurance increases?"

I was mad at my dad but I expected it from him. He was a cash-only guy, a "live within your means" type and don't waste money on interest payments. But I couldn't understand the car salesman grilling me about my income and my savings.

None of your damn business, I thought. You sell cars and I'll take care of the payments. It's a beautiful car and nothing will go wrong and nothing is going to happen to me or my job, so what's all the worry about?

When I bought my first house while I was still in college, I felt like a crook because I had to conceal the fact that the owner carried a second to enable me to qualify for the loan on the house.

The banker had looked me in the eye and carefully explained why there were rules that protected people from borrowing too much money and getting themselves in over their heads. Actually, he explained, it was protection for the bank, for me, as well as for the whole economy.

Well, I wasn't happy about the grilling but managed to survive some pretty tough months until I eventually paid off that second. I was lucky but pretty ignorant. I had a wife and a new baby on the way whom I was putting at risk.

Later in life I got the brilliant notion to start a business. I really spent a lot of time doing research. I talked to people, read books and actually thought I was well prepared to be successful.

Another turndown by the banker. I was livid at the time. She wanted to see my business plan. She questioned my predictions as being less than conservative. She wondered about my experience at conducting this new venture.

Fortunately, after a couple mornings after the night before, I began to see that it was possible for me to fail but certainly not likely. At that time in my life, I really thought there wasn't anything that good hard work couldn't cure. But lucky for me, the banker held tight.

As years have gone by, I watched car dealers selling new cars to people who couldn't even scrape enough money together to get shoes for their kids. Builders were building structures that they couldn't sell. Banks were lending money to build houses on land that someone else owned. People were qualifying for loans when they couldn't even afford to service the debt, let alone ever pay it off. Corporations run for years without ever showing a profit. We can buy and sell futures, options, credits and thousands of imaginary products that don't even exist but they are billion dollar money-makers.

I don't want anyone I know to get crunched by debt. It's ugly, demeaning and often hurts others around them. But I think it's time that we all got real about what we can afford. We need to recognize that we are not alone in this world either. We can't expect to keep getting higher salaries and not paying more for our bread.

Pay a fair price for what you want, giving the seller room for his profit but living within your means.

I'm wondering if greed isn't the root cause of all this?



Jim Follis is a retired school administrator, has published two books and currently writes three newspaper columns. Eating, drinking and making merry are his professed hobbies. Traveling, trekking and observing people follow not far behind.