raising4daughters

Here Comes a Consumer Killer

So how is this a bad thing? The news today seems to be noting good news as bad. Saving rates are finally positive and growing, credit card rates are increasing, and mortgage lenders are (horrors) requiring that the borrower have a down payment and decent job prospects. I've also heard that banks are increasing interest rates on deposits so they can have greater reserves. What a concept? Actually earning interest on your savings account, a concept killed by the Greenspan fed.

I agree with you that these trends will not support a consumer-led buying spree recovery. But, let's face it.....with so many discretionary consumer goods being made in China, the multiplier effect is no longer what it used to be. Consumers no longer have the ability to shop the US out of recession, even with easy credit.

The consumer needs a few years to fix his balance sheet. The feds need to realize this and stop encouraging wasteful spending. Consumer savings should help recapitalize banks (unless that's overwhelmed by their toxic waste CDOs).

Yes, this will be a muted recovery, and the feds need to prime the pump with job creators through accelerated depreciation, investment tax credits, and other policies that will help manufacturers.

Bad Mortgages Are Only the Beginning

To, Superannuated SkiBum, lowering the interest rate on credit cards won't solve the problem; that will make matters worse.

Credit cards are for REVOLVING CREDIT.....short term loans that are paid off completely in or less than 30-days. Anyone that maintains a balance on a credit card can't afford what they bought and should not have made the purchase(s) in the first place.

This crisis will be solved when Americans restrain their purchasing habits to those of their grandparents.

Quitting the Hedge Fund Game - Mark Sellers

Right on, roger maxims. The moneychangers and corrupt civil servants in the Repblicrat Party got their seats in the game of musical financial chairs.

If we aren't there yet, anger will turn into apathy and indifference. Then and only then will we have a bottom, but we need WAY more blood returned from the bloodsuckers like Sellers.

As for the corrupt civil servants, anyone that votes for a single incumbent is a fool and deserves whatever comes to them.