People are buying cars they can't afford, putting in pools, putting on additions....Anything they can think of.
So, they're not using their credit card, taking a deduction, mortgaging their ONLY real asset to the hilt...and scr**ing up the whole damn system.
Credit Card Companies should never have offered so many credit cards to people who abused and used the system and then defaulted or declared bankruptcy. Lending institutions should NEVER have allowed INTEREST ONLY LOANS! THere are many groups that got GREEDY and lost the ability to JUST SAY NO or REFUSE loans to those UNABLE to qualify or have credit for such loans!
That is a part of the problem, too.
But... Thomas Sowell had a recent column in which he talked about how the term “redlining,” was created to allow people who could not afford to make payments, had bad credit, lived in dangerous areas, etc, then had it opened up for them to get home loans that they could not afford to make payments on.