Over $2 trillion in soon-to-be-lowered credit card limits will cause home prices to drop another 20% over the next 18 months, according to Oppenheimer analyst Meredith Whitney. By withdrawing 45% of the bank credit currently available to consumers, Whitney believes “forced consumer de-leveraging” will require more capital injections, exacerbating the liquidity freeze that is paralyzing the world. “The severe consequence of this cannot be overstated,” she says.
Hold on to your hats.
Next Stage Of Credit Freeze May Hit Home Prices, Credit Cards (Morningstar)
Beautiful credit! The foundation of modern society. Who shall say that this is not the golden age of mutual trust, of unlimited reliance upon human promises? That is a peculiar condition of society which enables a whole nation to instantly recognize point and meaning in the familiar newspaper anecdote, which puts into the mouth of a distinguished speculator in lands and mines this remark: ”I wasn’t worth a cent two years ago, and now I owe two millions of dollars.”
Quotation from Mark Twain, The Gilded Age
What a wonderfully apt quote.
that s the sad reality….
I hope it changes…
A house for a chicken? That’s awful, better stay put and buy a shotgun to scare away predators and creditors.
The “barter system” has some merit though if organized properly. In the Berkshires (MA) there is a Berkshire Dollar which can even be bought at a regular bank. For $100 Federal Dollars you get 110 “Berkshires”. About 90 businesses participate, from groceries, to hardware stores, Yoga lessons and legal consultations….
It’s a start! That reminds me, got to get some more “Berkshires” today!!!
This is just one method to keep the local economy industrious.
Weaning folk off Credit cards has to be a good thing … if it is done gradually. In harsh economic times of old, a good barter system can’t be beat – provided you have skills/goods you can trade.
I’ll trade you two empty Starbucks paper cups for your Prius.
Very nice photo and lovely cartoon too.
We will soon be trading items and I can’t wait to stop using plastic money. Woohoo!
Bartering is the only true form of trade. Money means nothing when it means nothing and we all just look for food, clothing, and shelter.
I don’t eat meat- so can I trade a couple of packets of tofu for your motorbike please?
This is absolutely insane! We’ve got such a thing called; the “Certificate of Entitlement” when you purchase cars in SG, and from over thousands of dollars for a small car; it actually dropped to a mere SGD$2!
It’s bounced back though; but still! That drop is shocking! It costs even less than my everyday lunch!
though the skit is funny it really is a sad reality. hope it gets better.
there is little “hope” PM – it will not get better for quite a while…that is, if you speaking about financial issues. But our minds are free, isn’t that something?
LOL, that Mark Twain quote is too funny.
I love the Mark Twain quote! Perfect!!!
And love the new look of your page!