Quote:
Originally Posted by yys
I hate to break it to you but pretty much everyone you know would lose their home if the credit markets completely seized up. No new mortgages; at least not without putting 50%+ down with outrageous terms. Mortgage coming due and you want to refinance; forget about it. No auto loans; cash only. Say goodbye to your credit card. Want that new fridge, washer, dryer from Sears; pull out the paper. Etc... Welcome to the past
Unless you were cash rich, which most aren't; you would be shit out of luck for any large purchase.
People think things are bad now. Take away the average persons ability to acquire credit and the economy would drastically shrink.
What you're failing to grasp is that it was main street that was bailed out.
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Everyone would not loose their home if credit seized up. The majority did the right thing and do a fixed rate and one they could afford, even if they can not refinance.
No auto loans? Oh well that would just have to be some bad medicine we could swallow for awhile.
New appliances or whatever, have the cash ready for what you want to buy. Do this and do not have the want it now attitude and most would never end up in trouble anyways.
Less credit cards - Yup and would again be limited to those with very little risk and very high scores like it was before, unless they were secured.
Not saying it would not hurt, but few could rationally say that we should not have just swallowed our medicine and got over what made us as a country sick. Our economy grew and was huge before credit was common, no reason at all to think it would fall apart without easy credit- long term at least.