Home and Bothered

Between contracts and running out of money is a little stressful. Where do we go and what do we do when we find ourselves into this very type of situation? If you have an answer, please let me know. My bishop counseled me in trying to have a weekly date with my wife, and to try to have fun. You know, release some stress that may bottled up. That is a terrific thought if there's some money, you know, 5 bucks or so. If you don't you find a problem of gas money, emergency money in the event something happens. I find myself sitting at home trying to find myself in this ever growing situation.

The economy appears to be in a tight spiral downward over this credit crunch. In case this is read in the future, we are in a potential problem arising for free flowing credit and the lessening of reqard for credit risk. If you are in credit, you will know terms like debt to income ratio, asset allocation, etc, and for some reason, with the ever growing housing market, the desire to find their place into this burgoening industry, banks and other financial institutions have relaxed their credit requirements to lend to those with not so savory credit. Thus a higher credit risk, and when they lent on Arms, floating interest rates, etc, customers have found themselves in a world of hurt when the Fed's rose the interest rates to curb inflationary factors. By doing this very thing, people started loosing the very asset they pursued, their homes. With foreclosures on the rise, these financial institutions were finding themselves in a credit crunch themselves and unable to extend their own lines of credit with the very risk they had helped to create. When that happened, companies were closing their doors because they were unable to fund these deals. In an attempt to correct or curb their potential loss, they also made it extremely difficult on securing financing on new applications, even those that had a very stable credit history were being declined.

There have been posts of companies pulling out of their deals right before the customer signed their closing papers. As I type this, the Fed's are currently lowering the short term discount rates, the rate at which financial institutions can borrow funds, and since it's now lower, it has allowed consumer confidence to rise. With this rise, they may also lower other interest points to help curb other negative inflationary rates. Most likely, this will reinforce the negative lending habits that were so relative in the late 90's and early part of this century. I believe in history, in that we have the opportunity to learn from our mistakes. That includes short term as well, and I hope this correction has scared others into being responsible with their lending practices.

I can go on with other examples of incompeting and irresponsible lending practices, but I would like to hear from anybody else about what they are tired about.