Jason Rines (iThinkBig)

From Crunch to Catatonia

Those I know are seeking credit, they just can't get any. And the cost of credit has increased causing second thoughts for those whom can borrow. Take my business partner. $400k of assets as collateral and a 710 credit score. He expected 4.9% fixed on a re-fi but was offered 5.5% just at the level he was currently at on a fixed mortgage. After a week of he meeting multiple banks, I thought he was going to pop. His credit score had improved in the last two years as has his collateral. Your comments were also relevant Chris B, sorry if I seemed I was splitting hairs. I think the safety net is already showing strains. Best bet in my opinion is long-term job creation projects and tax breaks with the fiscal stimulus. In the short term, government should be setting up more homless shelters and ploughing a lot of needed food to the food pantries.

> Step 2 is to stimulate the economy through the consumer. The reason
> you are not seeing more lending is because consumers fear for their
> jobs, are facing foreclosure, and are basically broke. Public works
> spending, education grants, and an adequate safety net in the form
> of extended unemployment benefits or temporary Medicaid access for
> those who were laid off would be helpful here.