What America needs is more credit?

[kentuck]

Wages have stagnated for years. Unions have declined. Productivity has grown at record rates. Everybody got a credit card. The card company increased the amount on the cards from $500 dollars to $10,000 and $25,000 dollars. As their wages continued to shrink, workers put more and more on the credit cards. Then they finally maxed out on every card. There was no where else to go. Their wages were not going to go up. But what do they need according to this Congress? More credit? Hmmmm... The credit markets will freeze up if they do not vote for the bailout. Maybe we can get some more credit cards?

[Mist]

1. To get things moving again, so the market can work it's magic! nt

[jobycom]

3. Isn't this just a variant of the Laffer Curve and trickle down theory?

Give the credit companies more credit, so they can issue more credit, so that the money can trickle down to the public and stimulate the economy so that the improved ecnomy will allow them to increase profits enough to pay off debt.

Problem with Reaganomics is that the debt was always ahead of the profit curve. Is this going to be different?

[Mist]

9. Of course it is--I should have included the sarcasm thingy. nt

[jobycom]

10. I understood the sarcasm, just following up on your point.

:thumbsup:

[jobycom]

2. The idea is to make credit available for startup businesses and homebuyers.

The hope is that lenders will be more restrictive on issuing credit cards.

The problem is I don't see anything in any of the recent legislation passed or proposed to change the system to force that to happen.

Reminds me of how I handled grad school. I got a credit card and maxed it out to survive. Then I had no money to pay it back, so I got another credit card and charged more to it while using grocery money to pay off the other credit card. Soon I had two maxed out cards and even less money to pay them with.

The problem to me is the number of lenders who are doing that. This bailout, while having some points of merit, doesn't address the causes of the problem, and gives me no confidence that we won't wind up more in trouble in a short amount of time, once the $700 billion credit increase runs out for them.

[Selatius]

4. I'm old school. I say follow the money to the mansion and take it back.

Somebody has been getting richer while everybody else was left with stagnant wages. Find that person, tax him, and recirculate that money back to people in the form of social programs that provide opportunities. Maybe while we're at it, we could make it easier for workers to form labor unions so that they can bargain with employers for higher pay and better benefits.

By putting more money in people's pockets, demand is stimulated, and that is what drives an economy.

[Trillo]

5. It appears as one outcome.

The debt-based monetary system shall not be changed.

Should the debt-based monetary system be changed? And if so, how, and to what? It's not being officially debated as far as I can tell.

[nadinbrzezinski]

6. Credit has been the lube of business since the Templars invented

Letters of Credit way back in the 12th century or so

It wasn't a republican invention

And if bank A does not lend to bank B you may find yourself unable to use an ATM

:banghead:

[galileoreloaded]

7. Tes, America needs more credit. A pony and a flatscreen in every living room..n/t

[kentuck]

8. In my opinion, consumer credit is a big part of the problem...

Especially with people that have foreclosed on their homes. Most of them have most likely maxed out on their credit cards also.