[Homestead] Is it serious, or is it not?
crazygardens at verizon.net
Wed Oct 1 18:51:50 EDT 2008
I often do not agree with James, but here he is dead on. Small businesses,
community banks, etc, will not be affected horribly by this mess. If you
notice, it is the "wealthy" that are squawking the loudest over this. It is
their big fortunes that they have accumulated on paper and have used as
leverage for loans and those who live "high on the hog" on cash flow, not
cash, that are going to suffer. Well, you know the saying, the bigger they
are, the harder they fall.
This proves a point that I have been harping on for years: We no longer
have much cash (or real value) in our economy at all -- our country is
existing through cash flow and arrogance only. The King has no clothes.
(who is actually having a good chuckle over this.)
>> >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
> above stated.
>> >I'm concerned how even small businesses, in cities, and in small towns,
>> 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
> this morning, to wit; "Gasp! Won't this dry up all the local credit so
> 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
> said they had plenty of money to lend ON A TRADITIONAL BASIS. That is, if
> wanted a mortgage loan, you had to have at least 20% down and that
> 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,
> 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
> 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
> of unwise and bad credit is bogus. Those wallowing in the 'credit is
> more credit is better' mire ought to get singed and mend their ways,
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