Could Credit itself, be the reason our economy is tanking?
Yes, absolutely. Without credit, there would be no ‘credit crises’. Credit itself is a bad habit, even without all of the ‘creative financing’ that is tied to our current economic problems. When I was young we were told that ‘neither a borrower nor a lender be’ was a good rule to live by. Over generations most people have come to accept credit as part of everyday life. People that want to buy a house automatically think of getting mortgages and businesses routinely use commercial credit to solve their short term ‘cash flow’ problems. It seems like no one even tries to think of alternatives any more. A business that has no ‘short term’ cash is probably allowing too much profit to be taken out. A business that was built around the principal of not using credit would be very strong, financially. Families that did not use credit to buy their home would have a much easier time, too. Alternatives to mortgages could include starting and selling a family business or saving for a house that is
