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  • From: bob ford <bobford79 AT yahoo.com>
  • To: homestead AT lists.ibiblio.org
  • Subject: Re: [Homestead] Is it serious, or is it not?
  • Date: Wed, 1 Oct 2008 10:26:55 -0700 (PDT)

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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