So Credit doesn't matter in the new Economy?

So folks can have a perfect credit score but if they don't have money or a job then the credit is useless? Am I getting this correct? If this is so then the country is going to not be the same. We're built on credit.

 

Folks are just getting kicked out of homes. And being denied to buy things on credit with perfect scores.

 

You can be sitting on hundreds of trillions of dollars worth of imploding derivatives products, and still get credit

 

I meant normal citizens.

 

And they expect everyone to sit back and take it, like good boy Bernie, when the DNC shafts him.

 

Sorry, you've been misinformed. Hard assets (like equity in a home) and a stable predictable income take precedence over credit level score from past personal history.

We're not dealing with community level banking anymore, where everyone in the town knows everyone else on a first name basis. That ended around the 1950s.

 

Say what?

 

Hmmm.

 

Then most have been misinformed.

 

Yes.

People like me tried to tell them and warn them. Maybe 20 years ago before this all started.

There's a lot of hype being pushed by different groups of people. The whole idea that you need to develop a credit score is beneficial to financial companies. You need to borrow money you don't need to borrow, to be able to borrow money you do need to borrow later. And any of these financial companies can have you bent over a barrel in a dispute, by threatening to permanently ruin your credit score, and there's little you can do about it, even if you were in the right and they were in the wrong. It basically allows them to extort money out of people, when they think they are entitled to it.

 

I also want to point out that anti-discrimination laws make lenders more reluctant to lend, just because you are a good person.

You see, it only takes a few bad apples in the barrel to make the business of making loans out non-viable, so if lending companies do not have mechanisms they can employ to help weed out the bad apples, it's not going to make sense for them to lend to anyone, in many situations.
These discriminatory mechanisms are not always "fair" of course, but maybe it's better some people get the loans than no one does.

 

Good point

 

I think most folks were fooled by this.

 

If the "new economy" you are referring to is post covid, I am just as curious as you. I have good credit and have saved. I don't know what will be important when the economy kicks back into high gear. I would hope the US doesn't rely on China for important medical manufacturing, as well as any other good important to national security (wont't hold my breath). I would also like to see an economy based a lot less on debt across the board. I think we are going to see lots of issues with personal debt, local and municipality debt, as well as state and federal debt. We have already witnessed issues of states being economically taxed with increased unemployment because they have been fiscally negligent and this current situation has caught them flat footed. For individuals who have been smart and saved I hope it turns into a situation where you can use your saved assets to purchase investments, whether stock based, bond based or more material such as real estate to improve your situation. Take advantage of lower markets and lower interest rates.

 

Very eye opening. But can you share more on states being economically taxed? Are you saying that for one thing since they were fiscally negligent that this is part of the issue and that this exposes that they haven't been doing their job before this?

 

I admit I am not as well informed as I used to be, but loosely from the normal news cycle I have witnessed, states and cities are starting to be stretched financially. Those hit worst are states and municipalities that have been financially irresponsible up until now. Many may try and use this pandemic and the unemployment linked to it as an excuse to get federal bailout money. https://www.nbcnews.com/politics/do...escue-states-cities-struggling-under-n1193351
If one takes the time they can find quite a bit of states and municipalities that were financially struggling (such as Chicago with its municipal pension funds and lowered tax recipepts) before the epidemic, and they may use it as an excuse to get the feds to bail them out, negating their pre-virus bad decisions for a time at least....

 

So you feel they want to do unemployment to get paid out? So they are in favor of it.

 

I am talking about states and municipalities that have been running in the red for a long time now. Many have been getting by just from diverting from state and municipal employee pension funds, from using fancy accounting trickery that would put a fortune 500 company in the news and getting their financial teams in striped jumpsuits with little room to roam. Now that they have something like 20% of the population unemployed they can use this time to request money, not only to cover their unemployment but to cover losses from fiscal malphesense from before the epidemic. Nothing related to the extra unemployment. Sorry if I am being unclear, I hope this better illustrates my point.

 

Yep. I wanted to make sure others got it also. It sounds like there needs to be an investigation and some folks need to goto jail. They played with our money all this time. And we can't trust them.

 

VERY SOON our National Debt will surpass $30 Trillion. We have indebted our children grand children and great grand children!!

 

What are you even talking about?

 

I just heard Paul Krugman talk about the debt.

There IS a ceiling where debt will impact things but in a country that borrows in its own currency that ceiling is so high that no one really knows where it is.

Japan for instance has had a debt 200% of GDP for a while and they're doing fine

We came out of WWII with a debt 100% of GDP...we still carry it. All of it. Have for all that time and inflation ate at it over time so that it was insignificant.

Debt is not our problem right now.

Surviving the virus and getting the economy going once we do is the problem

 

Every dime of bailout money being spent by the Federal government right now is going directly to the National Debt,our nation has no money.

 

I guess you missed the above

 

Not exactly.No such thing as a perfect credit score.This isn't
an SAT test which can be aced.A perfect score 0f 1600 { Math & Verbal }.
Plus a credit rating is affected by things like how much credit one
has on using their credit card{s}.No matter if never missing a payment
of making a late payment.The fact that a person has outstanding credit
due alone is enough to lower their credit rating.
So much for the old wisdom of making sure and establishing credit
and also making sure to pay on time and never missing a payment.
Plus we are headed for Digital Money.Also maybe Banks being able to
close their doors and those with accounts,not being able to access them.
Before long being told one's Bank accounts aren't really their's.
It's the Banks.To possibly do with as they please in the event of an
Emergency.