posted on Feb, 22 2009 @ 11:42 AM
I am not an expert or even very researched on the Global Meltdown , I get my information from ATS and I just have a few questions and looking for some
1. With millions of credit scores ruined because of foreclosure, bankruptcy, late payments, no payments, unpaid medical bills, repossessions etc. how
will our economy ever recover even after hitting rock bottom without 1/2 the country being able to get credit?
Our economy (based on my very limited knowledge) is based on consuming by credit, right now the banks are not lending to the highest of credit scores
but when and if they do start lending again and millions have ruined credit then we still have a problem.
Will a restart button be pushed? Will guidelines be changed? Just wondering if we do ever start a recovery, how will this be handled because it seems
like a big issue down the road.
2. Speaking of credit... Will the credit card industry get reformed?
Right now it seems like the CC industry is kicking themselves in the ass by raising APR's skyhigh based on absolutely ridiculous reasons. I was
reading an article yesterday about this man who put 2 airplane tickets for his fathers funeral on his CC and because it raised his total debt all of
his CC'c raised his APR to the 20's and now he has minimum payments on his cards that he cant afford. Lose your house or stop paying on CC,
3. If the reason for this economic nightmare is to bring in the Amero or some other global currency, what would be the problem with a new currency and
why are so many against it?
I have also heard that the economy is getting tanked so the rich would get richer and the poor poorer but if we switched to a new currency how would
the dollar convert and would the rich still be rich?
4. Gas prices???? $4 a gallon dropped to $1.50 in December now we are at $1.78, I think gas prices were lowered for 2 reasons... 1. Americans were
starting to wake up and growing restless 2. Holiday Retail
So where will they go now? Will TPTB let them start to creep back up knowing that most Americans will not be able to ride another wave of $3-$4 a
My family is still playing catch up from the high gas prices another round would wipe us out.
5. The car industry. This question goes back to #1 in some aspects but...
My mother has a blemish free, extremely high credit score and went to trade in her Chevy for a new Chevy and she COULD get financed if she took a rate
that a year ago even the worst of credits would have laughed at.
If you cannot get financing under 6% with perfect credit and NO financing at all with less than perfect credit then how the hell is the car industry
going to ever recover?
Car prices seem to being going up, not many have 25,000 bucks laying around for a new Chevy Cavelier.
The stimulus package has some kind of tax break for the end of this year if you buy a NEW car but if financing is not available what does a tax break
6. The housing nightmare.
It ain't over by a long shot...
One thing that may help would be for FHA, Fannie and Freddie to at the very least start renting out the vacant homes they are sitting on. Once again
this goes back to question 1, if we have an overstock of property with no financing then the housing will get worse.
If we cant get these vacant homes financed when we already had a million+ excess of homes pre bubble burst then we will never see the end of this
nightmare and property values will continue to drop and foreclosures will continue to happen. These houses have to get occupants, why not rent them
This word scares me the most. My family lives by need not want, we do not have or want credit to live off of but if gas prices crawl back up and this
hyper inflation does happen then we will have no choice if a loaf of bread is $10. (But where will the credit come from?)
No jobs, no COL increase, no bonus's, no raises because of economy and yet the word inflation is becoming a future reality, we would not be able to
supplement our income to cover inflation. I think most Americans, even the upper middle, would have the same issue with inflation and wouldnt that
just put us back in the same boat over and over?
8. Retail, Restaurant, Hospitality industries are going to take a big hit. Unemployment will rise exponentially since our country is service based.
Once again a merry go round and I dont see a fix, when will this hit and how hard?
I have more questions but this is a good start.
Thank you for your time and knowledge.