Quote:
Originally Posted by piercehawkeye45
I understand it is that loans and credit are what keep our economy growing and if credit scores are so bad that people stop taking out loans, wouldn't that greatly hurt the economic growth of the country? On a slight tangent, our current recession is due, at least in part, to the lack of loans out in the housing market?
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Putting the personal credit scores aside...you hit what is behind the Fed's current monetary policy...keeping interest rates as low as possible to keep credit flowing.
Along with pushing healthy banks to buy smaller failing banks. But that also tighthens the market because those healthy banks buy the good and bad assets of the failing banks and thus are not able to expand or extend credit to new consumers/small businesses.