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article7 - they are credit worthy for People used to have...

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http://www.nytimes.com/2007/07/27/business/27stox.html?ref=business Markets across the Americas took a nose dive today, echoing the big slide in New York. Fueling the plunge were concerns that higher corporate borrowing costs will curb the rapid pace of takeovers that had driven stocks higher this year. Investors also feared the lackluster environment for home sales and continued defaults for people in sub prime loans would increase debt defaults and weigh on corporate earnings. The main problem today is that anybody and their dog can get a credit card, people buy houses using variable rate mortgages, or are just plain lent more money than
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Unformatted text preview: they are credit worthy for. People used to have to work hard to get a credit card. People used to have to make 10% or more down payments on vehicles and homes. We let anybody with a pulse have credit. This is a bane to society and to a free market system. Credit companies charge enormous interest rates and the government passed laws to raise the minimum payment level. Conversely as the government and creditors made credit easier to get, they made bankruptcy harder to file. We have been set up for failure so that if we let are guard down we will lose everything we have worked for....
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This note was uploaded on 03/02/2010 for the course ECON 110 taught by Professor Vernon during the Summer '07 term at BYU.

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