[Homestead] Is it serious, or is it not?
bob ford
bobford79 at yahoo.com
Wed Oct 1 13:26:55 EDT 2008
I hope you are right , James. I really do. Right now, every thing I'm hearing from different sources says different. There was a small town banker on one channel yesterday ( If I can find the video or a transcript I will post) who said that even though his bank was doing great right now, lending to people large banks won't process; that this credit crisis could wipe out the commerce in his small town.
People have been using credit pretty loosely for a lot longer than a decade, from my experience, anyway. I 've had access to much more credit than I should for most of my adult life. I've rarely used leverage, so the credit is still there for me. But, I'm not supporting three children, in a low paying job.
I know many with income/assets greater than mine; and many with less. Cash is soon to be king. It is hard to raise cash with three kids, a mortgage & car note; hospital bills, and a lower paying job soon to be working fewer hours. It is easy to raise cash, if you have already assets/credit.
I only see bad things for many, with the usual pool of people gaining even more. I am not a socialist or even a populist; my politics are strictly libertarian. But, I do feel empathy for people I know, you only played by the rules they were taught. A couple of those people are my baby brothers. They don't have a clue. Just work hard, pay their bills,go to church; wait for deer season.
We are in a rigged game; the people who should pay for this mess, will profit, instead. And, the worker bees will face more divorce, substance abuse; poor health; early preventable death, in reward for their hard work.
If unemployment hits even 14%, this society will feel unrecognizable pain.
Some economists are saying we could see 24% in 2 -3 years. I am truly worried.
But, I do hope that people who think like you are right, and that I'm worried about nothing.......bobford
--- On Wed, 10/1/08, Clansgian at wmconnect.com <Clansgian at wmconnect.com> wrote:
> From: Clansgian at wmconnect.com <Clansgian at wmconnect.com>
> Subject: Re: [Homestead] Is it serious, or is it not?
> To: homestead at lists.ibiblio.org
> Date: Wednesday, October 1, 2008, 11:01 AM
> > >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,
> </HTML>
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