Everything is just fine unless you need to borrow money to start a business, buy a car for your son or daughter, buy a house, borrow money to pay for college or replace a refrigerator, the heating/cooling system in your home.
Other than those ‘little’ things we ought to let the system go down the tubes.
>> Other than those ‘little’ things we ought to let the system go down the tubes.
Credit will tighten (and in my opinion, that’s a GOOD thing).
I don’t think credit will disappear altogether, despite the doomsayers.
Households and businesses have (literally) trillions of dollars in cash on hand. They all need to do something with it. Some of it will go into Treasuries, but with Treasuries yielding next to nothing, how long before cash holders are forced to find something more productive to do with it?
Right now credit is paralyzed because of the toxic paper that's flooding the market. If a prospective lender is holding toxic paper, it can't know how much money it can afford to lend. If a prospective borrower is holding toxic paper, lenders can't tell whether the borrower is solvent. Given that any toxic paper held by a borrower is in effect also held in some measure by the lender, almost everyone in the market is exposed to toxic paper.
The more quickly the toxic paper is cleared from the marketplace, the more quickly the market resume functioning.
“buy a car for your son or daughter, buy a house, borrow money to pay for college or replace a refrigerator, the heating/cooling system in your home.”
buy a car for your son or daughter, you’re f fool, that should never be done!
“borrow money to pay for college or replace a refrigerator, the heating/cooling system in your home.”
Out of the hundreds of employees that i’ve had over the years that is exactly what all of them did except maybe 6 or 7 and that is exactly why they never had anything more than a pot to pee in.
Save the money and pay for it!
BS! I'm in the market now and people that can't afford the loan don't get the loan. Good Grief. Grow up and know how PC damaged America. There is plenty of money.