Congress and Credit

I heard it again, the other day, why aren't banks lending? Why aren't employers hiring? Why is the economy continuing to struggle? The answer is simple, but most of us, especially our elected officials, won't accept it. Ask any pitcher or quarterback' "what happens when you try to aim, or control your pass or pitch?" The answer is that it doesn't work out. They are only effective when they have confidence in the fundamentals and let the rest take card of itself. Just like the more we try to aim, or control our economy and business environment, the worse we actually make it. Today we show no confidence in fundamentals, thus we are not getting the desired result.

Most businesses will tell you that their business is doing ok, but they are worried about the future, not of their business but of us. They have no idea what congress will do next and no idea how much it is going to cost to run their business in the future. A simple yet perfect example of this is seen in the affects of recent banking regulatiom with the little discussed ATP, or ability to pay calculator banks need to satisfy to loan money.

On the surface the tool seems to make sense as it is used to make sure the person taking out the loan will be able to repay the loan. Now look at real life and someone who is not the bread winner, but going through a divorce. They can't buy a car, get a mortgage, or even a credit card, as the bread winners income can't be used and the poor person applying has no income of their own. When looked at in this light, doesn't really make sense now does it. Common sense has been replaced by, what I refer to as Congressional sense. This is just my opinion and yours is welcome here at Answer the White House Phone....