More Problems on the Horizon for Credit

photo credit: clogozm

What makes our recession seem worse to a lot of people is that most of us simply cant get a home loan. Our great middle class is dwindling and we feel every step of it. We all understand that banks are not in the business to loose money, but when lenders dont lend what do people do? You have to be super rich in order to secure new lines of credit these days. There are times in history where we saw this same chain of events. If we are normal, hard working, 9 to 5 Joes it may be near impossible to get a head and land a new home any time in the near future because the experts are predicting more problems on the horizon for credit.

Most bank risk managers expect credit standards to remain strict and just about half see tighter restrictions in the near future. Not so good for us on the other end. A survey of banks showed that many banks arent as pessimistic as they were during the first part of the year, it did show that they know that credit will fall short of consumer demand.

It wouldnt be as bad if we knew there was an end to all of this, but as it is now, we see no end in sight, and our forecasters and leaders are not exactly painting a pretty picture for us. If they are attempting to, most of us feel the exact opposite, the numbers speak for themselves, and the numbers dont follow what our politicians are saying. Its funny how every politician has their own set of facts, makes you wonder why we are loosing faith in our leaders.

Read the full article from Inman News

Posted on September 10, 2010 12:19:25 by Blog Author