What’s the credit crunch all about?
Turn on your TV. Open a newspaper. There’s been only one story over the last months. Something called a credit crunch is coming. This is bad. Nobody should panic but the economy is in trouble. You’re short of money, thinking about a payday loan online. Then come all the headlines. Wall Street high fliers suddenly bailed out, taken over or dropping into bankruptcy. Well, let’s get one thing clear. You’re not reading this because you’re a Wall Street banker. You’re one of the millions of guys who work steady and pull more than $1,000 per month. You’ve got a checking account but not a great credit record, and all you want is a few dollars as a cash advance payday loan. So what’s the credit crunch all about? Think about everyday produce you buy in the market and the more expensive organic foods. Everyone needs food to live but you don’t die if you never eat an organic bean. Except it turns out they didn’t understand it either and they’ve all lost a small fortune. Does that mean banks have got no money to lend? No! Does that mean you can’t get an instant payday loan from a finance company? No! All the millions of guys like you have your weekly or monthly pay coming into your accounts. That banking operation has always been profitable. It’s still profitable. Ordinary Main Street banks are not going out of business. Even if they get into trouble, your money is guaranteed by the government so there’s no need to worry.