Can the Banks lower their consumer credit requirements to boost business?
The feds keep lowering key interest rates to help banks/creditors out however it seems the reality shows that anyone with prime (725+) credit is not going to be spending any money in this down economy. Is it even possible for banks and creditors to lower their expectations and issue prime rates (tier 1) to people with lower credit scores (say 675 fico and over)? It seems this maybe one of the ways to start boosting the economy.
Public Comments
- Banks issue credit and price that credit according to risk. The current economy is partially due to the lax lending standards which were prevalent.
- It sounded like the mortgage lending problems it could created. There are many banks in dealing with sub-prime credit or loans. These banks loss a lot of money, you can guess who utimately paying for the dead beats. Who are you kidding? People are already over extended themselves, we just get deeper into a hole that we can get out. Savings will actually help the economy better than the one time or short term stimulus. When people saved, banks will have money to loan and interests rate will go down. Where there is no money to borrow, interest rates go up and up...
