We've had it pretty good since about 1990. So bad business stroies you would never known, due to lax lending practices since 2001 everyone had a job and money to spend.
But no one understood the credit cycle very well, meaning all that lax credit that ws signed off for will need to be paid back. Due to banks reluctance to sign off on new loans, there is no more new credit for consumers.
They are now forced to pay back their debts.
If you don't have 20% equity in your home, you are screwed for at lest 10 years - as the economy in general terms considers your repayments on your loan far more important.
The consumer has topped out. Easy credit days are now long gone and everyone now needs to repay their debt and perhaps 'oh my god' increase your savings in your nominal bank account.
Things will continue to tick over..if you are involved in manufacturing and industry like I am, then you know exactly what I am talking about.
