Brokers work on commissions, and they never learned how credit is given by banks.
When I first got my job, the bankers started to tell me how much credit they can give me. What the installment payment I can have at the auto dealer. How big an installment payment I can support when I buy a house. And how much they allowed me to eat and spend on clothing and other small expenses every month.
Credit is based on steady income. There is no such thing as credit woes. If you lose your job, the banks will carry you for a while, until you are back on your feet. for 30 year mortgages, there are always some periods that people have to change jobs.
So, how foolish Wall Street thinks; main street is going to go broke because there will be no more jobs around, so that credit is woeful. Better talk to your banker friends and find out if there are indeed credit woes, that now they think the sky is falling.
Even Argentina is paying their IMF debts now. A few years ago, they want forgiveness of all debts, things were hopeless. A few hundred million dollars of exports later each year did the turn around. We had to prime the pump. We are turn around artists, and quicky plans always worked in no time at all or sooner than you think? We maybe still around 10,000 years from now, so should you worry to death and make every investor lose their money?? |
