posted on Oct, 15 2008 @ 09:27 PM
Credit built the USA. It wasn't until credit became available that this nation started experiencing tremendous growth leading to what once was the
greatest standard of living in the world.
Of course no one should take credit that they won't be able to pay back. That is a no-brainer. However most folks who have really made a great life
for themselves, got started with some saved money and then used credit to really get the ball rolling. They took the chance that they would succeed
and be able to pay the loan back. Some folks end up not suceeding, but many do. That is just the normal course of things and is built into the system.
If you are currently employed, then odds are that the owners of your business used credit at one point and still use credit today in order to
maximize their profits and keep you employed.
Credit opens up avenues that would not be possible without it. Let's look at that car you pointed to. You have to buy that car from someone, a dealer
if it is new. If a dealer needs to have 200 cars at $20,000 each on his lot in order to meet business demand, that means that he would have to fork
over $4 million up front, so he can have that car available for you to buy with cash.
As for banks, they do more than give people credit they can't pay back, although almost all loans are usually paid back. They facilate the trade of
goods by making your money more efficient. Instead of carrying $20,000 cash down to the car dealer, you can write a check or use a debit card. The
banks actually make you money safer. I don't beleieve that any american has ever lost one penny of deposits in any bank in the country. It has always
been made good on even if the bank went under or robbed. If someone robs your house and takes all your cash then you have nothing.
The banking system isn't in trouble because of bad loans. It is in trouble because of the derivative and insurance bets that were made on those
loans. Couple that with a poorly run goverment who relies on borrowing money at interest instead of printing it themselves, then you have the disaster
that we now have, because even banks aren'tlikely to continue giving loans to those who can't pay it back.
Only thing that saves this country is to change the monetary system.