5 ms·
Credit IS cheap and plentiful That's the fallacy, right? One would think it is plentiful given the low rates, you have an anecdote that it is, but look at the
by WillPostForFood 5y ago
Credit IS cheap and plentiful
That's the fallacy, right? One would think it is plentiful given the low rates, you have an anecdote that it is, but look at the data. Lending is fraction of what it was in 2007.
https://cdn.substack.com/image/fetch/f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fbucketeer-e05bbc84-baa3-437e-9518-adb32be77984.s3.amazonaws.com%2Fpublic%2Fimages%2F1d4895dc-9903-4a63-b0d2-f16a5b2d1e20_1833x1101.png https://cdn.substack.com/image/fetch/f_auto,q_auto:good,fl_p...
- Supermancho 5y agoAgain, that's because people aren't taking out copious credit, not that they aren't being offered. There's no data on what's offered, only what's contracted.
- SilasX 5y agoYep, and all throughout the 2008 crisis, I never stopped receiving credit card offers.
- Supermancho 5y agoOfc if you have decent credit you will get offers even in economic crashes which isnt relevant. That's part of the debt economy. There's no accurate aggregate measure of lines offered (only those issued), which is the subtle problem with the (most) analysis about credit gluts vs interest rates.
- SilasX 5y agoIt also means you have to be careful about tabulating "yes I can get credit fine, I just don't want it (at that price)". Edit: And also, at the time, even people with bad credit were still getting those offers. And my credit history was really short at the time.