Quote:
Originally Posted by FlamesAddiction
Not just an Alberta thing I am sure, but there are a lot of people who qualify for stupid high mortgages and then buy the maximum they can. I mean, just because a lender is willing to give you $600k for a mortgage, it doesn't mean you need to take it.
Same thing with cars. I am not a super high earner, but I know I could go into a car dealership and buy a new truck on credit. But I also know that it wouldn't be wise.
While I feel for people who lost a lot during the recession, a lot of it comes down to poor decisions.
The conservative nature of the government over most of the boom played a role as well. When the money was coming in, they should have been collecting more taxes and investing more in diversifying the economy. Obviously there was nothing anyone could do about the price of oil, but you can't have all your eggs in one basket and not know that busts follow booms.
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Agreed. I'd add that they should also have saved more themselves, so that they don't have to borrow so much to spend during the tough times.
The government is just as guilty as the consumer in getting caught up in the short sighted fun during the boom times.