The end of cheap credit is over.

Economics Economics Questions
1

I think the era of cheap credit is over. The present financial crisis speaks for it. Here is why I think we have reached the its final end.

  1. consumes more than it produces. Our country has negative savings rate.

  2. 75% of US families have high debt levels. About 40% of these families owe more than 50,000.

  3. During the 8 years of the Bush administration the National debt has at least doubled, and although we can absorb more Federal debt, we can not afford the rate at which it is growing.

  4. The cost of living are so high that many Americans rely on borrowed money to just finance their monthly costs.

  5. Most families can not take any more debt and this is also the case for small companies which are 90% of all economic activity.

If the era of cheap credit is gone, we are about to see a nice period of deflation and an adjustment on the way we trade, consume and lend money.

2

1.) This is heavily correlated to exports, not purely how much we as Americans consume.

2.) Debt is not correlated with bad. I have debt, but thats because I decided to go to school to better my future. Debt is paying later for something you receive now.

3.)This growth is also directly related to two massive wars, not purely government spending on socialism like will occur if Barry gets elected.

4.) This is not because of the cost of living, but because they have outlived their means. This is more related to a lack of understanding of the economy than to an overall problem with the market. Also you did not provide sources for any of this information, credible ones at that.

5.) I find it incredibly difficult to believe that “90 %” of all US economic activity is small businesses, and even if this were true, why do people always attack corporations which would then make up a miniscule percent of GDP.

3

If you can use the information in the link attached use it. Good luck.

http://mwhodges.home.att.net/

4

There is no credibility in your source, therefore no credibility in your argument.

5

Good talking to you my friend, however this is the beginning of end for cheap credit. Good bye

6

I dont even believe that is a cohesive statement.

7

Cheap credit does not equal easy to get credit or easily given out credit; from my udnerstanding, credit is still readily available to those who have good credit, as there is less risk with those who have good credit (i.e. common sense).

8

Wait a second, if the end of cheap credit is over, then that means that there’s going to be more cheap credit!

Oh noes!

9

As you well said credid will still be available. However, we see an end to credit as we have seen it over the last 10 years.

10

This guy is a joke…he sent me this email

"Subject:ECONOMICS???

Its good that you are studying economics. I have myself a BS in Economics and I am currently finishing my MBA in Finance. If you wanna succeed in Eco, you better stop thinking that you know anything. Just good advice. "

Obviously a liar, and not worth even allowing to stay on these forums, I would personally vote for him being removed.