[Homestead] Is it serious, or is it not?

Clansgian at wmconnect.com Clansgian at wmconnect.com
Wed Oct 1 13:01:07 EDT 2008



> >Hey, wait a minute, James <G>.  I'm as philosophically opposed to any 
> bail-out as you.  


Bob, it's not your philosophy I was referring to but rather your worries as 
above stated.

> 
> >I'm concerned how even small businesses, in cities, and in small towns, can 
> function in a new economic paradigm, thrust upon them with no notice.
> 
> 

Several things about this:  This very topic was on a local talk radio program 
this morning, to wit;  "Gasp!  Won't this dry up all the local credit so no 
one can buy a house or car or borrow for business."  Several local bankers 
(bankers of local banks, First Tennessee, Highlands Union, etc.) called in and 
said they had plenty of money to lend ON A TRADITIONAL BASIS.  That is, if you 
wanted a mortgage loan, you had to have at least 20% down and that downpayment 
could not be another installment loan.  If you wanted to buy a new car, you had 
to have a down payment and the approval of the loan would be based on your 
income and credit history.  

When people clutch their chest having the 'big one' over credit drying up, it 
is almost invarialby they type of utterly unwise credit that has been the 
coin of the realm for the past decade or so.  Good ridance to it.

Some of our cities around here became debt junkies and addicted to 
maintaining a good credit rating.  They are going to suffer some, and to that I say, 
good!  Some (like Abingdon, Va) funded most of their projects cash on the barrel 
ahead of time and they are going to do fine.

In a word, the notion that people, companies, businesses, and even cities 
that have used sound, wise business practices are going to suffer in the absence 
of unwise and bad credit is bogus.  Those wallowing in the 'credit is good, 
more credit is better' mire ought to get singed and mend their ways,
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