There Will Be Little Credit In The Digital Age
April 29, 2010
– Comments (7)
If Fools went into the poorest neighborhood in Detroit and loaned each family and business one million dollars at 6% regardless of their ability to pay the loan back.........and then each month thereafter, took a camera crew and reporters to update the Fools.
In the first few months we would likely see dramtic improvements to the physical appearance of the homes, businesses and parks. We would likely see sales increase dramatically in the neighborhood stores and tax revenues generated from the neighborhood spending would skyrocket. The families would likely go out and spend lots of money on new clothes, appliances, and automobiles driving prosperity to anyone that got in their way. Home values would incrase driving up property taxes.
Lawn services would likely have to increase employment, same with local businesses, and construction and home improvement would be booming.
Our FNBS reporters would be coming on TV every morning and bragging about the recovery, the businesses owners would be interviewed boasting about triple digit sales gains and the local politicians wouldn't know how to spend the new found tax revenues.
This behavior would go on day after day, week after week, month after month......UNTIL THE MONEY RAN OUT AND THE DEBTS HAD TO BE PAID BACK.......
Right now government and Wall Street is borrowing over $3 trillion dollars per year, much of it from our retirement/investment accounts, to keep the charde moving forward........
UNTIL THE MONEY RUNS OUT...........
Welcome to the Digital Age.
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