Quote Originally Posted by Master Eq
I explained to them that 2 years ago, that score would have gotten them a very good intrest rate, and their wouldnt have been anything to worry about.
Two years ago, credit was arguably way too easy to get and that this was a major indicator that something was amiss.

I agree that the media definitely had a role. The second there was negative economic news, "depression" was plastered everywhere. The media is like a gossipy neighbor and should be treated as such. It thrives off of attention, knows the best way to that is to spread drama everywhere, and in it's zeal tends to leave wisdom and accuracy in the dust. However, if I recall correctly, the credit markets locked up before the looming credit issue was public knowledge. So, they can't really take the blame for the initial lock-up.

Quote Originally Posted by fetishdj
At the risk of using Dilbertesque managerial cliches: The financial market goes in cycles or boom and bust, often quite rapidly. One thing I have never understood is people not seeming to realise this. Ok, stock prices are low, house prices are low.... this means it is a time to buy and hold onto said stocks/property until the market recovers when you sell at a profit. It seems quite simple... but then I suppose there is the problem if everyone holds onto these stocks then the market suffers...
Indeed. Some people do realize this, and those that take advantage of it tend to end up a lot better off in the long run. It requires courage to buy in when the market has gone south, and most people don't have that kind of courage when it come to their money. Not to mention it does require having the money to spare during the downturn *grin*