Aren't you glad you gave $700 billion dollars to stop the credit freeze?
Most banks still tightening credit standards:
In the past three months, a large number of banks continued to tighten their credit standards for consumer loans such as mortgages, credit cards and home-equity loans, although the percentage of banks that increased their credit standards in the past three months was slightly lower than the record numbers who tightened standards in the October report.
No banks made it easier for consumers to obtain credit, and only a few made small changes in standards for business loans to make them more available, the Fed reported in its quarterly Senior Loan Officer Survey of 53 domestic banks and 23 branches of foreign banks.
Well actually
Isn't this what needs to happen, given that credit in general and CDS contracts in specific were a large part of the problem?
Having said that, it seems to me that a much quicker way to get there would have been to let the big banks fall and pay off all 300 million little mortgages instead.
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Maximum jobs, not maximum profits.
I agree with you on that score
Probably yes and no. On revolving credit, credit cards, I have no idea how it can be justified to charge 15%, 23%, 28% interest plus a host of late fees, universal default...under any circumstances.
My understanding is banks are just changing the terms of people, with balances...and obviously there is a huge difference between a 5.6% interest rate on $5000 dollars versus 18% interest rate.
Hell man, at this point I think they should have divided up the grand whopping total of $2 trillion dollars between every single person who paid into the U.S. tax system evenly.
We'd be so much better off!
Considering that I got it down to 9%
Just by joining a credit counseling service, I don't think that the large interest rates on revolving credit can be justified.
As of my next tax return though, I'm going to be consumer debt free- having foreseen this credit bubble as early as 2001. It's taken me 7 years, and a complete change in lifestyle from credit cards to debit only- but that means as long as I don't lose my job before March, unemployment can handle my debt payments (down to just house and one car).
We'd be a A LOT better off without the "save the rich" stimulus.
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Maximum jobs, not maximum profits.
I agree that debt free is harder but well worth it
It's taken me 7 years, and a complete change in lifestyle from credit cards to debit only- but that means as long as I don't lose my job before March, unemployment can handle my debt payments (down to just house and one car).
We'd be a A LOT better off without the "save the rich" stimulus.
All of the people in the Nevada and Cal area that made those thousands of dollars turning over houses. Bragging about how this will never stop. I just kept paying my balance off every month. Now they want help or just want to walk away from their debt and feel that it is alright to do. There is only 10 or so percent that this will affect and I say let them eat beans and rice for awhile until their senses come back. The rest of us will continue our modest life style, but one we can still afford.