Sep
18
Do you think the sub-prime mort. meltdown will further erode consumer?
Filed Under Other - Business & Finance
CHARITY G asked:
loans such as car loans, credit cards, in-store finance?
ANGELO
loans such as car loans, credit cards, in-store finance?
ANGELO
Comments
3 Responses to “Do you think the sub-prime mort. meltdown will further erode consumer?”
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COLE
Yes it will hurt the economy in many ways
1. Home builders will stop building
2. construction workers for home builders will be laid off
3. Home depot and Loews will lose money
4. suppliers to home depot will not sell as much
5. Suppliers will reduce work force
6. when people lose their jobs they will not pay bills
7. finance company will hold bad loans
8. and on and on
It’s Reagan’s theory of trickle down economic in reverse
We are head for higher interest rates tight credit and an economy that will suffer
you can only party for so long before you have to pay for the band!
JOSH
I was wondering the exact same thing just last night. I can’t help but think that there will be an adverse reaction in those sectors you mentioned. I do not believe that the effect will be as severe for existing credit out. However, as the mortgage market tightens up their criteria for giving credit, so will most other “credit givers.” We’re getting back to the point that consumers will need large down-payments for houses, new cars, etc. It’s kind of a bad time for folks (like me) still bouncing back from credit issues. I would love to buy a house right now, but my credit scores will force me into saving a full 20% of any house price (even with a VA approved loan). The same is soon going to apply if I try to buy a new (or like-new) vehicle. HTH
SCOT
Absolutely, there is a whole lot of us that spent money we didn’t have because we figured- we’ll I don’t have a lot of money but I am rich in home equity. Now that the value of houses is dropping people don’t feel as rich so they spend less. In other word the wealth effect. Watch for the big rebates on cars.