Is a major credit crunch going to happen?

[royalfan5]

http://www.cnbc.com/id/20195795

The ECB and the Fed have injected a bunch of cash into banks to help keep credit available. AIG has issued warnings that defaults are rising in the category above sub-prime. The next few months could be quite interesting if you want to borrow money for some reason.

[slickdawg]

I think we are on the verge of another financial institution crisis - and the gubbamint gets to bail them out again.

[Chuck Bao]

Please NO!

What about all the moralizing? Thailand in '97? The internet bubble?

What about moral hazzard?

US banks have no discipline. Mail everyone and their dog a new credit card? Let everyone and their dog buy a house with zero downpayment?

I love the idea that everyone can own their own home and trade up as circumstances allow.

I just don't trust rating agencies which have repeatedly failed in actually pointing out risks or a free ride for banks that made very bad credit decisions.

[OUinFLA]

I went and checked my buried jar.
All is well.

[Widescreen]

WooHoo! If Countrywide goes under, I don't have to pay my mortgage anymore!


;)

[StoopTroup]

We are close to being debt free except for our Mortgage.

I'm not sure that I'd borrow for anything again unless it was business related.

The way all the laws have changed...you better be spending your dough on stuff you need instead of stuff you'd like to have...

Unless of course your wealthy beyond your means.

[royalfan5]

http://www.cnbc.com/id/20204383

The Fed had to make another substantial cash injection today to preserve liquidity. Not a particularly good sign.

[NormanPride]

So would now be a very bad time to buy a house?

[royalfan5]

So would now be a very bad time to buy a house?
There could be some deals out there, if you can get a loan. Mortgage availability is going to be substantially reduced in the near term.

[SoonerBOI]

Ten year cycle is upon us. I hope it will not happen. The marginalized sector will truly suffer. 97 financial crisis that started in Thailand wrought havoc around the world. Just a thought...What if the Chinese dump our currency? Can you imagine that?

[1stTimeCaller]

cash is king. If you wait a year or two you'll be able to pay pennies on the dollar for boats, motorcycles, RVs, lake houses, trucks, fast cars and all kinds of good stuff if you have cash in hand.

[royalfan5]

The Fed just made their 3rd injection of the day.
http://www.cnbc.com/id/20211772

[Tear Down This Wall]

The chickens of the Bush I-Clinton-Bush II presidencies are finally coming home to roost. Loose credit wasn't a good idea when Bush/Greenspan propsed in in 1992. When Clinton/Greenspan and Bush II/Greenspan continued it.

Basically, they argued that it wasn't fair to have some people have good credit and other to have bad credit. In Bush I/Clinton, there was loads of useless talk about "home ownership" for people who couldn't really afford homes.

Once the Democrats joined the Republicans in sucking off the business lobbyists, all bets were off. Anyone with blood pulsing through their veins became a mortgage broker. The telecom pretenders were shut down by the market in March 2000. Now, the financial pretenders are going to get their spanking.

Someday, perhaps, we can get back to the idea of earning credit instead of lying to the ignorant and just giving it to them, regardless of whether or not they can handle it.

[soonerscuba]

I cringed when I heard the words "ownership society" come out of Bush's mouth. I don't think Bush has anything to do with this, he was simply parroting an idea that sounds lovely. Basically, not everybody deserves to own a home, people that can actually afford to buy homes deserve to own a home. To what TDTW said, if you want better credit, be a better saver and smarter spender, I imagine this concept will work 500 years from now regardless what the market does.

[rufnek05]

The Fed just made their 3rd injection of the day.
http://www.cnbc.com/id/20211772


i heard something about that on the radio, but didn't catch all of it. good link

[rufnek05]

mmmmhmmm, a person with bad credit not being able to pay their mortgage, shocking.

[Tear Down This Wall]

I cringed when I heard the words "ownership society" come out of Bush's mouth. I don't think Bush has anything to do with this, he was simply parroting an idea that sounds lovely. Basically, not everybody deserves to own a home, people that can actually afford to buy homes deserve to own a home. To what TDTW said, if you want better credit, be a better saver and smarter spender, I imagine this concept will work 500 years from now regardless what the market does.

Exactly!

It's not so much deserving, but saving up to able to do so. My parents were married for 12 years before they were able to buy a house for the first time. My brother and sister and I never knew. We were just kids.

The deal is this - you don't do any favors to people with loose credit. If they handle money poorly, they are going to handle credit poorly. Credit is simply money that isn't there yet.

It's the prime example I give people when they try to throw either of the Bushes into the "conversative" camp. When Bush II was elected, one of my staunchest Democrat friends talked about all of these cuts he thought would be made. I guaranteed him the government would grow under Bush II, just as it did under Bush I

There's nothing fiscally conservative or responsible about what occurred under Bush I-Clinton-Bush II/Greenspan. Nothing. The collapse is coming sooner or later.

I feel as though my generation, Gen X, will spend its entire working lives fixing what the Baby Boomers f'd up with their loose credit and refusal to save for their retirements. Along with the politicians' they elected and their penchant for writing checks for money that wasn't in the bank.

Crappy.