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Tluv00 said it very well "It's not about consumer credit but commercial and business credit (for now). It's still on Wall Street not Main Street (hate that phrase). If a company needs credit to pay employees or purchase materials or build homes or whatever, they are not as able to get that loan meaning they are going to lose business meaning they are going to go out of business meaning less jobs meaning more gov't assistance meaning the end of the world Well most of that would happen "
It starts at the top and has a trickle down effect, so everyone is effected. This is what all the morons saying "why should taxpayers bail out banks and financial companies" need to understand.
I went to Home Depot last night in South West Durham to purchase an LG washer / dryer set. During the checkout process, the sales rep automatically runs your name and address through their computer for pre-approval on a Home Depot credit card. Let me just say that the sale reps eyes got big and said, "Wow!, Would you like to buy Home Depot?" He was kidding of course, but I think you get the point. Credit is there for those that deserve it. Of course I have zero debt besides a mortgage. As it should be people.
Things are just as they should be here due to actions of those involved. Increasing FDIC from 100k to 250k in attempt to sweeten the 700 Billion Wall Street Bailout Bill is a farce. It affects no one but perhaps 1% of the population, if even that...as you can spread money around accounts to several institutions. There are literally hundreds and thousands of banks, so unless you have something like 50+ million in cash laying around...it's not that hard to secure your capita. This is just another slap in the face of the American tax slaver, I mean payer...yeah.
I must say that I disagree with your assessment. I believe the biggest problem we currently face is about credit and liquidity in the markets. Anyone who has a small business is starting to feel the squeeze, particularly if your business is less than 5 years old. Certain types of businesses (e.g., construction, home builders) are heavily reliant on credit to pay their vendors and contractors, so those types of businesses will feel the squeeze sooner.
Increasing the FDIC insurance limit from $100k to $250k is also a good move for small to medium-sized business owners. Most small entrepreneurs run their payroll out of a single bank, so it's easy to exceed $100k at any time during the month. Suppose you're the business owner about to make payroll with $175k in your account. The bank goes under, and only $100k is insured? Not good. You are correct that one "can spread money around accounts to several institutions" but how realistic is that for a small business owner? I personally think increasing this limit is a good idea for small entrepreneurs and for the general public because it may help rebuild confidence in our banks.
That "tiny" percentage you mentioned that would be affected by this is huge when you consider how many jobs are generated by small business owners and how many services they provide in our communities. Talk to any entrepreneur in your area and ask whether he/she thinks that this credit/liquidity issue is insignificant.
To go beyond anecdotal evidence at Home Depot to what I've read in newspapers this week, car loan approvals from Sept 2008 are down from 2007's 83% approval to the low 60%s, colleges are scrambling for funds now locked in Wachovia accounts, the subprime market is pretty much completely closed, and the president just approved $25B credit to automakers as credit seizes up. Overall, I'd say that yes, credit is drying up.
This is probably just piling on at this point, but a single cashier at a store is hardly an accurate economic bellwether. Something tells me Warren Buffet isn't using this as an indicator. Speaking of, he was quoted as saying that if we don't fix the credit crunch fast, he'll be going back to delivering newspapers. Hyberbole? Sure. But, you get the drift. Given his track record, if he's concerned, I'm concerned. Now, back to Home Depot, you may be able to get a credit card from them, but - as reported on money.com yesterday, AT&T can't get credit. When a stable, blue chip company can't get cash, that's very bad news for the rest of us. You may not feel it yet, but if we don't unstick the money supply fast, you'll feel it soon enough.
I went to Home Depot last night in South West Durham to purchase an LG washer / dryer set. During the checkout process, the sales rep automatically runs your name and address through their computer for pre-approval on a Home Depot credit card. Let me just say that the sale reps eyes got big and said, "Wow!, Would you like to buy Home Depot?" He was kidding of course, but I think you get the point. Credit is there for those that deserve it. Of course I have zero debt besides a mortgage. As it should be people.
Things are just as they should be here due to actions of those involved. Increasing FDIC from 100k to 250k in attempt to sweeten the 700 Billion Wall Street Bailout Bill is a farce. It affects no one but perhaps 1% of the population, if even that...as you can spread money around accounts to several institutions. There are literally hundreds and thousands of banks, so unless you have something like 50+ million in cash laying around...it's not that hard to secure your capita. This is just another slap in the face of the American tax slaver, I mean payer...yeah.
While I personally am against this bailout based on principle, I do also realize it has to happen. Unfortunately we are all in this sinking ship together, like it or not, fair or not. I'm pissed because my wife and I have always lived within our means, paid off debt as soon as it was acquired, paid off our mortgage, paid cash for everything including cars and pay our credit card bills in full each and every month. Yet we, like millions of other people, are being thrown into the same abyss as those who lived on credit, spent and never paid it back. NOT FAIR! Right? But if we want America to survive, this bailout has to happen.
The part that really get me? Is why aren't these greedy theives going to jail?
We will come out ok in the end from this bailout. There are assets there and they will increase in value, thus paying us all back. We will be in for a few tough years though, if not a few decades before it all settles, but we will survive.
As to how this all ties into us locally? Well, eventually I expect the Triangle to be hit with tough economic times too and will all the new people moving here, we could see a real bad fallout. Yep, I'm one of those new people, so........
The Home Depot guy can't see your credit rating, just how much you were approved for. Not sure how they are automatically checking your credit without permission though?
And I think someone already stated this, but a credit check only puts a minor ding of like 10 or 15 points in your credit and will go back up in a week or two.
Since we have little to no history of being able to fix things wholly; we tear down old and historic sites to build new one, we through out broken products to buy new ones...why is everyone so convinced we must attempt to fix things now and clinging on to a failing economy policy? Whether the bill is passed or not, we are heading for trouble and have been for so very long...
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Well most of that would happen 
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