The Economy And Banks Are Attached

In the last year and a half there has been a lot in the news regarding the recession that this country is going through

. There is no question that the banks, credit unions and other financial institutions have been through a lot. One of the reasons that this country is in the recession that we are is because of the creative lending practices that they participated in with the real estate industry.

There is a lot of debate right now about how to get the economy unstuck and moving again. The banks and other lending institutions are very reluctant right now to lend anything because of the uncertainty that surrounds the economy and the government. The more the debate rages on in the government the more reluctant they become to lend money.

The inability of investors to have their investment ideas financed, the more the economy grind to a halt. The sad thing about this is that there are plenty of people who are willing to invest and who can do so from a credit rating standpoint, but if they cannot get the loan they cannot make the investment.

Another factor in the economy is the spending of the consumers as a whole. These aspects show some improvement, though it is very slow growing and very cautious. The American society consumer made some mistakes and they have realized that. While not every individual has learned their lesson, the society as a whole has and they are spending a lot more cautiously and within their budget. They are using their credit cards less and they are taking control of their debt and getting things back into line in their lives in regards to their money.

No matter how you look at it the we are all paying the price for the choices of a relatively few people in the country. That is the way everything is in life though, so before you complain about the circumstances that we are in, remember that everything in life is this way. This is where the saying that life is not fair comes from.

Once the banks begin lending again, then the economy will free up a bit and things can get better. However, be sure that you do not fall back into old habits personally, that may have caused your own personal economy collapse.

by: Art Gib

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