Credit Thaw
November 25th, 2008Credit Thaw
Or Not…
The fed has announced plans (another $800,000,000,000) to help “unfreeze” credit - such as credit cards, student loans, and auto loans.
The first question should be, wasn’t the first $700,000,000,000 bailout supposed to unfreeze the credit?
Instead, the major banks and lenders “hid” the money in less risky ventures - none of which actually helps the economy.
Keep your eyes on this as it unfolds, but don’t assume it will be a good thing. We do need readily available credit for consumers, but the question remains - will this latest funding become available to consumers? And, if it does, how many of them will just end up in the exact same situation that got us into this mess to begin with — with easy credit?
