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Originally Posted by 2Hot4TV
People with money are sitting on the cash waiting for something they can invest in and not be taken for a ride.
The Banks are not loaning money because they have increased the cash on hand to cover any run on the bank.
The amount of jobs that will be lost due to Ford and GM shutting down or large cut backs will funnel down to all the smaller suppliers and then you will have a depression that you cannot recover from with any amount of bailouts.
We have seen layoffs in all job markets ( with more to come) on the west coast except areospace, but that can be just around the corner as poeple stop traveling.
The best position to be in right now is debt free and hang on.
I think our worst fears have come to past and we are just waiting for someone to put a fork in it.
I sure hope I am wrong.
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This was Bernake's excuse for taking the bailout cash and giving it to the banks to loan - and it is complete horsesh!t. What they are really saying is they don't have the cash to loan at higher rates to less than stellar credit risks (the people they have been preying on for decades) because the risk now hits home - They need the coffers filled back up to go after the moderate credit risks which is their bread and butter but they don't want to assume the risk with their money -
If you have decent credit, they are still climbing over each other to loan you money. I just bought a new truck and financed from a local bank 4.25%apr for 72 months. A local bank, not some dealer financed scheme... and for what it's worth, the banks I inquired at and did not use are STILL calling my house to see if I want their money.
The bailout now loads the vaults back up - with
your cash - so it can be loaned
back to you.
So you get to borrow your own money and pay them interest to do it, and if the loans default, no biggie we just go back to the money tree and get more to loan... Friggin' Brilliant. These criminals never cease to amaze