Lately I have been listening to alot of conservative talk radio
as I am on the road most of the week, and it seems that the new scape goat for the economy not rejuvenating is the consumer. Apparently now that the banks have cash to loan there is not any one out there that feels like they need to buy a house or borrow against their current one.
I have this theory, and that is we have hit the breaking point on credit. Okay, start making jokes, captian obvious will be my favorite. No, I am talking about the public in general, you and me walking into Best Buy and getting a credit card for a new flat screen TV. We, the consumer, are tapped out of credit. We borrowed, and now it is time to pay that money back. We cannot borrow any more, and now the economy will be stalled because we cannot buy things using credit.
Is it just me, or is this just wrong that our economy is based on legal loan sharks?
People will not borrow because they have seen friends and family and news reports of banks making more forclosures than ever before. They relize that if they own a house that it can lose value, and they also relize that the good jobs that were out there are slowly going away. So whatdo people do? They turtle up and start conserving everything, including their money. No flat screens, no mocha latte's, no BMW's, no free spending retardidness.
They will also not borrow in the type of numbers that we saw the last couple of years because they simply cannot. They do not qualify anymore in the numbers the banks require, and the truth is alot of those people who did get crazy loans before the crisis should not of gotten them in the first place.
My theory also says that we have 2 and 1/2 years farther to slide, and then it will be another 4-5 years before we really pull out of this. I see soup lines and shanty towns, and before you come with "oh, that could never happen again", just remember that all of this has happened before multiable times, and it will happen again if we make it through the upcoming climate crises in this current form of country.
Peace, bitches