Quote:
Originally posted by legion
Does the fact that these are commonly financed with someone else's money mean that people are more likely to speculate with their purchase? The are more tolerant of price increases that depart from intrinsic value because they anticipate future gains will go up even more?
|
Personally I think that it's more a case of people not understanding the liabilities and risks that they are signing up for when they borrow money. Look how many people run up massive credit card debts, just because someone's willing to give them a card. They don't stop think about how they can pay for the 997GT3 that they just borrowed money for. They figure once they get the money, that they'll be able to sort it out. But then before they really start to feel they payments they buy 240 inch, hi-def TV. Then there's the trip to the Europe. One day they wake up and discover not that they've bought something that they couldn't afford, but that they've bought about 6 or 8 things that they couldn't afford.