>Fundamentally screwed.

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>We had a meeting with some loan officers at work today and they painted a very bleak picture of the current financial situation in the U.S. Anyone who thinks the “fundamentals of our economy are strong” is seriously deluded.

The loan officers made it seem like a bunch of banks are literally teetering on the brink of ruin. They also confirmed what I’ve been saying all along. Greed and no government oversight are to blame for the current state of the economy.

In the meeting the loan officers said that some banks are being very conservative in their loans because they don’t have the necessary capital to back them. They also said that banks are scrambling for deposits. Take a look in your local paper (if you still get it) and notice the advertisements for 12 month certificates of deposit (CD).

Sounds similar to this blurb from Wikipedia on the Great Depression if you ask me:

In the face of bad loans and worsening future prospects, the surviving banks became even more conservative in their lending. Banks built up their capital reserves and made fewer loans, which intensified deflationary pressures. A vicious cycle developed and the downward spiral accelerated.

I was considering buying a house, but now I’m thinking it might be wiser to just stash my cash. Although if by some tragedy the Republicans get elected, I might consider the mattress alternative.

About Amy Ruiz Fritz

Wine drinker, LEGO minifigure enjoyer, movie watcher, furniture re-arranger, Nook reader, traveler, online shopper, aphorism collector, cheese lover, humor blogger?

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