The greed that has been driving the Credit Industry has started to create the downfall of society in the United States. The lenders have been feeding on the borrowers main human weakness, greed. It has created an economy with a false sense of wealth and security while weakening society.
A combination of greedy lenders and borrower has created debt that is becoming unsustainable. The credit bust has finally created shock waves from Wall Street out to every town and city in America. People in high places were going to get rich quick playing fast and loose with other people’s money and it is costing everyone now. The boom is over. Millions of people have lost homes and fortunes and everyone will have to pay through inflated prices and lower living standards for years to come.
Speculators using credit continue to gain billions in profits from manipulating the availability of commodities through price fixing. Foreign banks also greedily bought US bank debt packages that were rated AAA but later turned out to be junk. The world is now woven together in this latest financial collapse. A major credit concern to our society today should be the Sovereign Wealth Funds buying our banks and commercial real estate.
Can you imagine the shock and awe when you are driving to work and you stop for gas, but the gas station will not honor your credit cards? Credit cards are going to be harder to get and use. Gas prices didn’t get talked about much when gas was bought with a credit card and only the minimum payment was made each month.
The banking industry had their political friends pass bills to change the personal bankruptcy laws.They wanted better control over the borrower’s future ability to file for bankruptcy. They then lent more money with only the thought of incoming interest payments with little regard for people’s ability to pay off loans or credit cards. Their greed for profit from minimum payments and late fees finally got out of balance and many people got so far in debt they just gave up leaving the bank holding worthless loan papers. They didn’t have to file for bankruptcy, they just walked away from their debts. This was the start of the downfall of our society, disregard of personal obligations.
The Federal Reserve is now using the people’s money to keep the banks solvent. How ironic is that? The banks don’t even trust lending to each other now, let alone John Q Public. The people with all the built up personal debt, are now bailing out the banks! The Federal Reserve just has more money printed for future generations to pay back. We now have free enterprise and corporate welfare being subsidized by the taxpayer. The interest on the National Debt is growing at warp speed, with little regard for the future.
Credit is necessary for our society to function and to grow. Many of the people in this nation have abused that credit and now everyone will have to pay as we try and recover from these decades of excess living and speculating. If our society hopes to survive and maintain any semblance of the standard of living that we have become accustomed to we better start getting all of our ducks in a row, really quick. We will have to start using credit the old fashioned way, paying for it.