Per the “Wall Street Journal,” headline today, “Bank Lending Keeps Dropping.”
Big surprise.
As I’ve said in previous posts, lending guidelines are getting more stringent. How are banks going to lend more money if it’s tougher to borrower? The irony is that this is so simple, yet, the smartest economist in the world are missing this simple point.
Credit is for people that don’t have any money. You’re better off not spending what you don’t have. Save a little each week during the year and that will be your budget. After the holidays you will owe nothing.