http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2008/11/06/MNCP13VR15.DTL
Quote from the article...
"It's very clear to me there has been a tightening of credit standards." referring to standard for issuing credit.
OK. So what? A tightening relative to the loose standards that have been in play for the past several years is a good thing, IMO. I'd like to see a comparison as to how loose or tight today's criteria are relative to say... back when not everybody was eligible for a wallet full of credit cards, where you needed a good sized down payment for a house of your own, etc.
How does 20-25 years ago compare with today?
88 to 83 --- 83 sucked and I was just trying to recover from the building industry crash - lost around $200,000 - no credit for me--- but by 88 I was doing well again with decent credit.
Yeah - it likely needs to tighten a bit now, but will not get the economy moving unless things loosen enough to make money flow. Money in a sock becomes worth less everyday as the printing continues.
I've heard it said that the credit standards now are more like they where back in the 1970's. No sources on this just hearsay. Just saying Don has a valid point.
From a personal / family standpoint we've been moving cash out of the banks and into...well cash. We've been conveting as much cash as possible into goods by looking down the road and seeing what we'd be needing to buy and buying it now rather than waiting till we need it.
I bought a new stihl chain saw yesterday even though I didn't really need to buy it right now. We're having the roof replaced on our rental even though it could probly have waited another year or 2. Bought some land I didn't relly need etc. Anything to get the cash out of the banks and convert it into hard assets. I'm not a fan of buying gold since I think you maybe asking for trouble by going that route. But buying things you'll need anyway I don't see how you can go wrong.
I think that today's dollars will soon be worth less and less but today's debts should be easier to pay off with tomorrows dollars if the price of our labor or goods we can sell can rise with inflation. Buying stuff now makes sense to me.
Depends on our situation. Other opinions?
Seems we already forget that this is not their money and that we just bailed them out for a trillion or more and growing according to Bloomfield and Ron Paul.
This money stolen from us is not being reinvested here -it is going for pennies on the dollar buyouts of broken financial institutions and corporations.
They have what they stole and are in control of the money stolen to fix things with no oversight on current theft and use of the bailout money for their own benefit. The coyotes are in charge of the hen house. Wonder what will happen to the eggs --- and the hens? hmm
They took the bailout money and cut it into bonus checks for the execs.