"It's the economy! It just went from SUCKS to BLOWS!!"
Posted on 06/29/2010 5:30:51 PM PDT by Kaslin
The word "credit" traces its origins to the Latin credo, or "I believe." Profits, paychecks and other rewards animate capitalist economies, but these financial incentives work only because of some basic beliefs — that debts will be paid, that contracts will be honored, that financial data will be accurate, that corporate insiders will act in good faith, that regulators and courts will enforce the laws.
When those basic beliefs waver, the economy suffers, sometimes mightily. In the past decade, private scandal and government laxity led to a loss of faith that crippled lending and investing and helped plunge the U.S. economy into the Great Recession of 2008-09. We're now coming out of the long, deep slump with a palpably different mindset on the financial system and its risks.
The country's transition from easy credit provides the basis for this third installment of a six-part Investor's Business Daily series looking at the post-recession realities for the six drivers that kept the U.S. economy strong and stable from 1982 to 2007. The first two parts looked at technology and globalization; after credit, the series covers the consumer, inflation and government.
(Excerpt) Read more at investors.com ...
"It's the economy! It just went from SUCKS to BLOWS!!"
LOL that’s good.
We are coming out of nothing! We are IN a depression right now. The government/policy makers are trying to hold up the house of cards, and they can't succeed without growth in the real economy. The federal government seems to be hellbent on making sure that doesn't happen. We are in bad times, getting ready to enter worse times. Take good care of yourself in every way.
I’m sure gonna miss finding three more credit card offers every time I open the mailbox. Not.
"What do you mean no more easy credit?"
Just so, damn it.
“We’re now coming out of...”
-
We ain’t hit bottom yet.
My company shut down yet another plant today
and laid off yet another 200+ workers.
The end is not in sight.
More like good riddance.
What? No Green Shoots?
I have bankruptcy clients who ask me when their credit will improve. I tell them hopefully never so they stay out of trouble.
Yup. Kept the Post Office in business.
Consumer credit needs to be reigned in for many consumers for the next decade.
My Bishop stopped by last night. He operates a
chain of oil change shops in eastern Idaho. He
just closed the Rexburg store. His employees are
usually unskilled. Less than 10% hang on over a
year. Retention is at 70% now. Insurance is
offered after a full year. Obamacare is going to
break the bank for him. If he has an under 18
year old whose parents don’t have medical
insurance, the law obligates him to cover the
employee AND parents. Sounds like a good
reason not to employ anyone under 18 yrs
old.
BTW, his calculation is that Obamacare will
require adding $4 per car serviced to cover
the costs imposed.
Dang... I still get a couple of those a week... Sure hope your right though... Could use a bit less junk mail.
“In the past decade, private scandal and government laxity led to a loss of faith that crippled lending and investing and helped plunge the U.S. economy into the Great Recession of 2008-09.”
This is misleading. The economy is not so neurotic. Lending and investment was crippled by people throwing money into various concerns (chiefly house building) for which there turned out not to be a market. It’s not that we suddenly lost faith, though we did. It was moreso the impossible to ignore empirical evidence.
“We’re now coming out of the long, deep slump with a palpably different mindset on the financial system and its risks”
Not according to the financial reform bill, which preserves the old mindset and then some.
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