Canadian Banks loosen credit?

[sunshine]

Do you think our banks will loosen the credit. As we all know right now it is not possible to get approved for mortgage if you have less than 20% down.

Is this good or bad? What do you think?

[bullish]

I think that the financial crisis is winding down and there will be more credit available to Canadians during 2009. It might not happen in the first 3 months, but eventually lending will be back to where it was.

[trent]

Originally Posted by bullish

I think that the financial crisis is winding down and there will be more credit available to Canadians during 2009. It might not happen in the first 3 months, but eventually lending will be back to where it was.

The financial crisis is not even halfway through. There are billions if not trillions of writedowns yet to be acknowledged. Loose credit caused this mess, and now everybody is asking for more credit to cure the current crisis?!?

Instead of relying on credit, try to save something, because if you lose your job and you don't have savings then the real trouble begins.

[ggonzo]

Originally Posted by trent

The financial crisis is not even halfway through. There are billions if not trillions of writedowns yet to be acknowledged. Loose credit caused this mess, and now everybody is asking for more credit to cure the current crisis?!?

I agree with you. Loosening the credit is not going to get us anywhere. We have to deal with the real problem and not making the same mistake again (unfortunately people have such short memory...)

[bullish]

Originally Posted by ggonzo

I agree with you. Loosening the credit is not going to get us anywhere. We have to deal with the real problem and not making the same mistake again (unfortunately people have such short memory...)

The lack of credit is the reason for the current crisis, don't you understand? Saying that we don't need credit is irresponsible and dangerous.

[trent]

Originally Posted by bullish

The lack of credit is the reason for the current crisis, don't you understand? Saying that we don't need credit is irresponsible and dangerous.

No, you are the one who doesn't understand. Excessive credit/debt got us where we are today, and this debt must be liquidated, because it cannot be repaid. This is what is happening right now.

[Canadian]

Originally Posted by bullish

The lack of credit is the reason for the current crisis, don't you understand? Saying that we don't need credit is irresponsible and dangerous.

So far this is one of the most ignorant and stupid posts I've seen from you. We are in this mess because of people like you, who are addicted to credit and would never be able to buy anything without using borrowed money. The good news is that people like you will soon learn economics 101 the hard way, and real savers will finally have their day in the sun.

[bullish]

Originally Posted by Canadian

So far this is one of the most ignorant and stupid posts I've seen from you. We are in this mess because of people like you, who are addicted to credit and would never be able to buy anything without using borrowed money. The good news is that people like you will soon learn economics 101 the hard way, and real savers will finally have their day in the sun.

I'm not addicted to credit, but credit availability is vital for our businesses and society. How do you expect somebody with a $25K salary to buy a car and pay for it cash. This is simply impossible. How do you think big businesses work? They simply need cash for their day-to-day operations and usually this cash is borrowed short term. If there's no credit, then there's no business.

[Steven]

I don't think that our society can function without credit either.

[Canadian]

Originally Posted by Steven

I don't think that our society can function without credit either.

There are different types of credit. For example most consumer credit is bad, as it doesn't produce anything. Business credit is entirely different story. A business can produce wealth, while consumer stuff cannot.