Fast Draw: Credit Crunch

[mikeybrumbrum]

We have just been told (in britain) that its going up form 500 billion pounds, to 1 TRILLION. DOUBLE !

Thats exactly £17,000 per PERSON.

Thats MAn, woman, child, old person, disabled, unemployed, EVERYONE !

So, multuiply the amount of people in your house by £17,000 EACH --- BUT you then have to cater for an unemployed person, or dissabled, or elderly !!

THAT is if it doesnt og up any more. Wembley stadium is running about 4 or 5 times OVER budget, and theyve DOUBLED the credit crnch

[aquapurity]

just vacuum it up

[smellslikefries]

The conclusion of this video is flat wrong.

This "recession" has been coming and the only way out is a price correction. Debt needs to be paid off - there is no way around this.

Governments in debt, corporations in debt, people in debt - they need to pay up. Sorry folks.

[yarber63]

i agree, pple need to learn how to save up the money to buy things not go in debt all of the time. it takes you less time to save up 20,000 dollars, then it dose to pay it back. plus you don't have to pay more then the 20,000. and even if you only have to pay something like 3% on your debt. then you still save 3%. and thats just good money there......

thank you for your time.

[mclure]

and what if your a business that needs $20,000 to buy merchandise which you will then turn around and sell to customers for $60,000. Without the bank loan/credit you don't make anything and get no where.

In a recession the worst thing you can do is save money. If everyone stops spending then lots of people lose their jobs which causes them to spend even less causing even more to lose their jobs.

[yarber63]

no if i ran a business i would still save up the money and when i spent the 20,000 to make the 60,000 i would still make all of the 60,000.

so i know what you go get your loans and pay more of your money for the samethings i BUY and in the long run i get more for my money. i save my money and i never borrow. and because of that i pay just a few monthly bills and have more cash in my hand to do with what i plz. and wow i still have all my bills paid.

[yarber63]

so with all dew respect you go on and keep working to pay more for the stuff you buy. i'm sure the banks will keep loving you more for it. but for me the golden rule will and should always be " if you don't have the money to buy it out right, then you don't have the money"

i think snl did a skit called "stop buying what you can not afford" maybe you should watch it sometime.

[yarber63]

and one more thing, if more businesses worked on that kinda thinking then they would all be in the green and i as a tax payer would not be spending so much of my tax dollars fixing a way of thinking that you support, and a way of thinking that has got us in this mess in the 1st place.

thank you for your time and reply

[yarber63]

and just one more thing, i never said stop spending. what i said was save your money up and buy whatever you want with your cash. why go in debt just to buy anything?

ok now i'm done thank you

[mclure]

Sorry to say but if people don't borrow to get started, they generally don't get started. If someone wants to start a business it would be ridiculous to save up the money, in most peoples cases, they wouldn't be able to make enough money to save up like that. If people didn't borrow you wouldn't get better financially positioned businesses, you would just get less businesses, less people with jobs, less spending, smaller economy.

[mclure]

One doesn't have to look farther than houses, all those people building houses would be out of work because not many people can afford a house out right.

[yarber63]

well for those who can not afford a house out right. they can rent one until they can afford one. sorry friend i'm not trying to be an azz about it.

but we have been doing it your way for to long now, and almost everyone is in debt now and needs some kinda bail out. for to long it was get it now and pay it back later and look where it has gotten us. to bail out the banks again because they made alot of bad debt they are saying that it is going to be around 2 trillion.

[yarber63]

and to me.... call me crazy but, that is 2 trillion reasons to change how things are done. will my way make for alonger recovery? yes but i also think it will also make it where every household in america has better spending habits and will make us all more money strong.

and once again thank you for your reply

[mclure]

lol "rent one until they can afford one". This statement kinda makes you seem ignorant of people who have to start from nothing, few people make enough money that they could save enough money for a house while paying rent too. Borrowing to buy a house saves you a tonne of money that would have bin thrown at a landlord instead of building equity for yourself.