Lets Have Congressional Hearings on Consumer Credit

Lets Have Congressional Hearings on Consumer Credit

There seems to still be horrible stories about the lack of consumer credit in America. The Federal government has spent hundreds of billions of dollars to loosen credit, but credit seems to be too tight still.

This week we had Congressional hearings from the Big Three Automakers saying they lost many sales this past month due to high credit restrictions to the consumers trying to buy or lease their cars. It seems that the consumers trying to qualify for loans had to have much higher credit scores than were previously necessary.

Higher scores seem to be required to obtain home mortgages also.

Small businesses also seem to be squeezed from obtaining loans also.

It also seems that some banks are just not lending to consumers at all when they previously did provide them loans.

The other major consumer credit story was about credit cards where many Americans had their credit limits reduced.

All of this is not good for the American economy to become better especially if there is not enough activity where all banks and credit unions are making loans and if the requirements are too harsh to obtain a loan.

If the faucet is making loans at a drop by drop rate the American economy will become worse than it is already rapidly.