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[bob ford <bobford79 AT yahoo.com>]

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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