2008-11-11 — moneyandmarkets.com
Washington is prodding consumers to borrow more, spend more, and save less. But consumers are doing precisely the opposite, as we just saw from the October collapse in retail sales.
Washington is prodding bankers to dish out more mortgage money, give people continuing access to credit cards, even lend money to sinking businesses. But the bankers are also doing precisely the opposite, as we just saw in a recent Fed’s survey of bank loan officers.
Why the reluctance to borrow and lend? Because most borrowers and lenders are finally beginning to recognize what really went wrong in the United States: Too much debt, not enough savings. They also recognize what they have to do about it: Try to cut back.
tvsterling at 09:06 2008-11-11 said:Very clear & lucid essay on why the bottom will very possibly/ probably fall out. We already had the crash. It took about a year later for the Great Depression to kick in. The over influence of the Supersuits & Limolizards has gotten worse not better. The funds that will be needed to keep the less favored out of the gutter are being squandered on them. The whole economic structure of the world is orders of magnitude more complex than in the late 20's. Already businesses are pulling out of & destroying whole towns & cities. At least America still has the resources to lessen the blow to OUR CITIZENS. WE DO NOT HAVE THE RESOURCES TO SAVE THE WORLD. Nor should we. Hopefully the death of 'Uncle Sucker' is at hand. Permalink
veritasbroker at 14:20 2008-11-11 said:If the problem is too much debt and not enough savings why then did they create over 1trillion in new taxpayer debt. More debt is not the answer. This is a nation built on the rule of law. The law is good, just and equitable. These institutions should file bankruptcy, have their assets sold to repay creditors, have individuals who can't pay their mortgage forclosed on, they become renters, the responsible members of society who saved are the investors who buy these assets at a discount and rent to the ones who can't or shouldnt own. Our legal system works and already redistributes wealth equitably. The action by the Bush administration through the FED and Democrat led Congress to create trillions of dollars of taxpayer debt and override existing law by by executive mandate has undermined the rule of law, our financial system, and grossly violates the rights of all Citizens by demoralizing and illegitimizing Our Law. It rewards the special interest who created this economic crisis. Yes, it is time for change. It is time to enforce the law, prosecute, encarcerate, require restitution and to hold the politicians equally accountable. Permalink
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