The future of credit?

[Anonymous]

No one regardless of job status actually owns anything until it's paid for. If a manager of a fast food restaurant makes enough to purchase a half million dollar home,they are entitled to do so.

Unfortunately everyone does NOT have the same advantages as others,no matter how much it's embedded in our heads that we are all equal. Credit is part of the american dream,it's how you manage it that counts. If you are a responsible adult,and you work hard,you should be able to buy what you want.

I know someone that is a manager of one of the largest fast food chains in the world.........she makes $86k a year.........her husband is a regional manager for same $150k. So,I don't quite understand your statement.

[Anonymous]

FICUS  made a very good point and raised very good questions.  It is all of the things he mentioned that led us to today's credit crunch.  He forgot to mention greed and excess.

Lovethe70s response worry me... a lot.   I must repond to that my saying credit is not a right it is a previlege.  the economist and fincancial co have proven equations that predict sucess.   a half a million dollar house on $150/ y,r  much less $85/yr  will lead one right back to the crisis we are in right now.    Owning a house greater than 3x/salary is not only irresponsible with one future but the future of our country, economy and our children. Unless you do not understand financial freedom.

FICUS is correct.  We have to remember that the backbone of credit is not the so called high acheivers or the wealthy so to speak it is a lot of the in-between.   Think about it,  part of the reason  payday loaner and lone sharks will survive is because there is a market for this type of lending. a very big market.   If after this melt down lenders are to lend only to the financially stable and good to excellent credit,  they will be few and far between, therefore the banks will have to take on greater risk because the base of the market with less than perfect credit, so we all pay the price.

We need to remember not everything you want you need, and not everything you can afford you should buy.  It is lack of this single recognition that got us here in the fisrt place.  This recovery form the economy is one thing.  the recovery from our private household economy is another thing.  many household will lag behind the country economic recovery.  Not everyone got in a crisis because of bad management... some got to this place because of others bad management.   but we are in this together and you do not have to expereince something for yourself to learn form it.  We all should learn form others good or bad mistakes.  soooo... look and listen in the end those of us who were on this forum would have been wiser and financially stronger. The reality is it will get worst before it gets better so bunker  down for the ride

[Anonymous]

I think there is no future, at least near term. Unemployment is going to increase, credit limits will be further decreased. With more people struggling, their credit scores will be going down. Unless we'll see some sort of relaxation on how credit scores are calculated, credit as financial mechanism will definitely get quite rusty. Bad news for economic recovery, by the way. But the other side of the coin means another bubble. This article on average credit score in America makes few interesting points why the future of credit looks bleak. I don't know if everything it says comes true, but things are not what they were for sure.