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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: John Vosilla who wrote (75716)	12/15/2006 11:10:30 AM
From: mishedlo	Read Replies (2) \| Respond to of 110194

'Credit limit was not reached' I totally disagree. With out banking system insolvent there was little access to credit in this country 15 years ago and it was almost impossible to get a mortgage. You are discussing willingness of banks to lend as opposed to consumer's ability to borrow. The latter was nearly unhampered as we went from 1 wage earners to two wage earners per household and wages were generally rising. I see little chance of households going to 3 wage earners any time soon. What we are seeing now is still (for now) willingness of banks to lend. Are we closer to a top or a bottom on that? Are we closer to a top or a bottom when it comes to consumer debt? We are likely near the point where BOTH willingness to lend and consumers to borrow are both going to be challenged. The latter is actually more important because consumers are 80% of the economy. That is what you miss in your analysis. Mish