Comments on: No Credit. No Economy.

By: Finance

Finance — Fri, 18 Dec 2009 02:33:02 +0000

What is not reflected in this, is the amount of borrowing that individual states are being forced to contemplate to ensure they stay operating. This will have to be paid back eventually, and it will fall on the tax payer to do this. The consumer can not get credit, is also frightened to spend what little he has, and is being hot with increased charges. I wrote a piece recently regarding the proliferation of traffic cops in North Carolina. Everyone is relying on what they can squeeze out of Joe public, he doesn’t have anything left to give.

By: Bors

Bors — Thu, 10 Dec 2009 15:31:32 +0000

6 months ago The Asia Times ran an article called “The end (or death) of debt Capitalism” Looks like it is true. Wall street keeps trying to get things back to where they were during the hay days of over consumption and speculation. Not going to work.

By: John Smith

John Smith — Thu, 10 Dec 2009 05:04:40 +0000

I guess it just means that the consumer is not going to be spending next year like everybody expects. That means lower tax revenue and more government spending and deficits an higher commodity prices.

By: Shawn

Shawn — Thu, 10 Dec 2009 03:23:01 +0000

Um, so how is it bad that credit is contracting? The original problem is that banks handed out credit like cheap candy. Makes sense to me that total outstanding credit should decrease even further–below Mar07 bubble-induced levels.