Quote:
Originally Posted by Table 5
Our whole economy/lifestyle is built on money flowing from one hand to the other. People spending, people lending, people buying....all these things need to happen for this economy to thrive. Whether you agree if that is good or bad is one thing, but the reality is that this current crisis has stopped this movement of money flowing, atleast at the top. Pretty soon this will flow down to the general population...where peole won't take vacations, small companies won't make payroll, people won't buy goods etc.
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Yeah, I get that. Corporations don't borrow money because they can't wait to buy something until they have saved up enough. Cash flow means everything at that end of the economy. However, I have heard a lot of talk from politicians this week gasping at how difficult it is to get a loan right now for the average Joe. IMO, the average Joe who is trying to borrow money right now is an idiot. Why on earth would you put yourself in more debt right now?
Maybe what they should do is pay down some of the consumer debt, ie bad ARMs, avoid foreclosures for Joe and get the mortgage banks some cash flow.