The Credit Crisis: I can't watch anymore of this!

I've been watching the credit crisis, and how it's talked about on cnbc.com

The U.S. government is solving the credit crisis by adding more credit to the market place. They want the creditors to be able to lend more money to consumers!

Is it just me, or does that seem to be continuing and growing the problem.

It seems that this economy is based on credit, credit, credit. We can't get away from it. The governments won't allow us to use cash. They want people to buy things using credit. That's why they're giving the banks more money to lend to consumers. What kind of example is that.?!!

Note: Credit of and by itself isn't evil. It's a tool for individuals to use as a convenience if they have enough cash to pay off their credit cards in full each month. The problem in the U.S. is far beyond that point.

Where does the credit problem stop, and the economic credit repair begin? When are individuals supposed to learn that using credit imprudently is bad.?! When are individuals supposed to learn that saving up money to buy things is good?!

How are we supposed to learn those things if the government is still sending out a strong message to us that credit is the way to keep the economy going?

I understand that if people started to pay down their credit cards properly and save money properly that the economy would go into a depression for a long long time. Should you do the right thing and take care of your own personal economy, or should you look out for the economies of the big corporation?

All I can see happening is that the big companies are getting bailed out. The individual is not getting bailed out. According to cnn.com personal bankruptcies are on the rise:
Personal bankruptcies filed in the federal courts totaled 934,009 (U.S.) from June 2007 to June 2008, up more than 28 percent from the 727,167 petitions filed in the same period a year earlier, according to the latest figures from the Administrative Office of the U.S. Courts.

The reasons for the sharp uptick? Rising consumer debt coupled with the mortgage meltdown left many consumers saddled with too much debt, Williams explained, and an increasing number turned to bankruptcy protection.

So the governments are still going to give consumers more credit even though they have too much already. When do we get to learn the lessons about prudent credit use.?!!

This is my fear... if we continue to "repair" the debt laden economy with more credit, the economy is going to crash and take much longer to repair, then if we just let things crash now and get into repair mode now.

If we start paying down credit cards, and saving money like we should, this will take money out of the economy. It reduces debt and "parks" the money in bank accounts. This would repair our individual balance sheets. This is bad for the economy because we're not spending at the retailers.

This prudent activity on behalf of the individual would throw many retailers into bankruptcy.

Is this the right thing to do? YES!!! It's always a good idea to pay down your credit cards, and save up a healthy cash reserve. This is fundamentally the way it should be. Even though this type of activity would throw the economy into a tail spin.

If the current economy is built on credit, then in my opinion, we need to correct this. The economy would serve us better if it was built on fundamentally sound principals such as pay with cash. You can never go wrong if you pay for items with cash. The economy will never crash if you pay cash for your purchases.

I hope we don't have to learn the very hard way.!

Oh Yeah..
U.S. may aid GM-Chrysler deal - Isn't the U.S. about free enterprise. If your car companies aren't making enough money, shouldn't they fail like every other company.? I don't even want to talk about it!!

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What is the credit crisis about?
Are we having a credit crisis right now?
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