Big Savings
How does the economic crisis affect those without investments or savings?

Does it reach all the way down to the “little guys” or only those with investments and/or big savings accounts?

Unfortunately, this crisis will affect everybody
The main problem is that banks do not have confidence in borrowers’ ability to repay. If they do not have confidence, they will not borrow. now, how are small businesses and some corporations going to fund profitable projects or even make payroll if they do not have access to credit? if they cannot take on profitable projects, they cannot grow and make profit for shareholders, nor can they provide positive returns for people’s retirement. if they cannot make payroll, they will lay-off employees. high unemployment may be correlated with anything from home foreclosures to crime. This is the heart of the problem and why the house has attempted to “bail out” banks.
As for you, it may be more difficult to get/keep a job. It may be more difficult to borrow from banks to get a car or home, or if you have credit cards, banks may reduce your credit limit, which ultimately lowers your credit score and furthers the degree to which you are unable to borrow. Depending on who gets elected as the next president, all government spending may stop all together – Spending on hospitals, schools, public uplift programs, etc. nearly everything we enjoy and take for granted everyday may become luxury items, no joke.
In sum, this crisis and the years following will be in history and economic books 50 years down the road.

If You Want Big Savings…Then You Want Big Lots


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