Cheap easy credit launched this boom, is its removal going to crush it too?

[numbercruncher]

I remember some 15 years ago trying to get 5k out of a bank to purchase a car and being rejected despite having a Job and clean credit record.

Now a days i can walk into a Bank quote my ABN , Quote a figure i expect to earn this year and literally have 100s of thousands thrown at me ... Any of us could send out 100 Credit Card applications today and receive 100 cards in the post next week with 5k on each one.

From multi Billion dollar buyouts to Multi Million dollar homes, fast easy credit has been the Gas which fueled this Ferrari that is known as the greatest boom in history.

With US lenders dropping like flies and banks finding themselves "on the hook" do we have a real live Credit sqeeze unfolding right here before our eyes ?

I reckon October or indeed a month later when higher payments are due because of the reset of the bulk of these dodgy ARM home loans in the States, will be a very interesting event to keep our eyes on!

I even read that Chrysler whom has never defaulted is struggling to raise 20b.

Are we sailing through the eye of the storm ? i wonder ...

 

[dhukka]

I remember some 15 years ago trying to get 5k out of a bank to purchase a car and being rejected despite having a Job and clean credit record.

Now a days i can walk into a Bank quote my ABN , Quote a figure i expect to earn this year and literally have 100s of thousands thrown at me ... Any of us could send out 100 Credit Card applications today and receive 100 cards in the post next week with 5k on each one.

From multi Billion dollar buyouts to Multi Million dollar homes, fast easy credit has been the Gas which fueled this Ferrari that is known as the greatest boom in history.

With US lenders dropping like flies and banks finding themselves "on the hook" do we have a real live Credit sqeeze unfolding right here before our eyes ?

I reckon October or indeed a month later when higher payments are due because of the reset of the bulk of these dodgy ARM home loans in the States, will be a very interesting event to keep our eyes on!

I even read that Chrysler whom has never defaulted is struggling to raise 20b.

Are we sailing through the eye of the storm ? i wonder ...

Not yet, at the moment the wind has just picked up a little. The eye of the storm is yet to come. This is going to be long and ugly playing out over at least the next couple of years.