Quote:
Originally Posted by ckelly78z
2008/2009 was the strictest housing start regulations, and was basically impossible to qualify for a new home loan, and not much easier to qualify for an auto loan. Banks had been burnt bad by their loose policy's of the late 90s, and early 2000s when most people overextended themselves, and banks gave loans to anyone who had an income.
Banks have slowly forgotten 2008, and have loosened loan qualifications to the point that most people are living beyond their means, and would be a catastrophe if they lost their jobs.
Consumer confidence is probably too high at the current time, and I could see another housing crash if this keeps pace.
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Auto loans.....student loans. Simply they need to loan money to lessor qualified people so that the economy of scale system can grind on. Remember that trillion dollar deficit is being pumped into economy as well.