True Audacity– Biggest Borrower in History Tells ASU Students Not to Live On Credit (Updated)
Barack Obama lectured John McCain on deficits and spending during the campaign.
At each of the three presidential debates he promised to cut the US deficit.
Instead, Obama will quadruple the deficit this year.
Obama’s budget Obama’s budget more than doubles the national debt held by the public, and adds more to the debt than all previous presidents — from George Washington to George W. Bush — combined.
Yesterday, Barack Obama had the nerve to tell students at ASU not to take shortcuts and live on credit:
We’ve become accustomed to our economic dominance in the world, forgetting that it wasn’t reckless deals and get-rich-quick schemes that got us where we are, but hard work and smart ideas — quality products and wise investments. We started taking shortcuts. We started living on credit, instead of building up savings.
Of course, the reason they can’t live on credit is because he needs them to pay off his loans.
UPDATE: You won’t believe this… Here’s a look at the Obama’s credit history, via The New York Daily News:
A close examination of their finances shows that the Obamas were living off lines of credit along with other income for several years until 2005, when Obama’s book royalties came through and Michelle received her 260% pay raise at the University of Chicago. This was also the year Obama started serving in the U.S. Senate…
In April 1999, they purchased a Chicago condo and obtained a mortgage for $159,250. In May 1999, they took out a line of credit for $20,750. Then, in 2002, they refinanced the condo with a $210,000 mortgage, which means they took out about $50,000 in equity. Finally, in 2004, they took out another line of credit for $100,000 on top of the mortgage.
Tax returns for 2004 reveal $14,395 in mortgage deductions. If we assume an effective interest rate of 6%, then they owed about $240,000 on a home they purchased for about $159,250.
This means they spent perhaps $80,000 beyond their income from 1999 to 2004.
Hat Tip Ernst Blofeld