Quote:
Originally Posted by dga
Yes, but you're thinking in terms of retail credit. The problem here is that the credit that is drying up is the credit given to businesses. If there is no credit, there is no expansion. Let's say my company buys supplies from Office Depot. Are we gonna be going in there and paying cash? Obviously there is a monthly bill that needs to be paid, but the services are provided up front. Office Depot will need lines of credit to be operational while its creditors cancel their bills. Abuse of credit is a huge problem, but credit is necessary for expansion. To say let's just get rid of credit and work with cash only would mean no one would ever own a house again. I'd like to see you come up with 150k for a home,  . That real estate agent would be quite shocked,  . |
I would never pay 150 thousand for a home. But monetary worth like beauty is in the eye of the beholder.
I was thinking more along the lines of how people are going to react to a cash crunch not being able to buy those extras. But I get what you are saying about business. That's going to hurt. But unfortunately the average person is so PO'd at the government they don't care.