Lenders Tightening On Credit

with the latest fiasco on Wall Street and the crisis in the housing market, have flipped lenders into tightening up their belts when it comes to granting loans and credit cards. Only borrowers with the highest credit score or those with good col laterals will be granted permission to join the soon to be prestige club of qualified creditors. Basically, the banks have become tight wads, not willing to part with much sort after money.
The economy have been piloted by banks willing to give away loans to even those that didn't meet all their criteria of a borrower. This new change in banking has put a damper on consumer spending. The eminent recession has put consumer in a spending freeze, they account for 2/3 of the spending in the economy.
The banks are becoming much pickier to whom they lend or how much they lend, these decisions are leaving marginal lenders in a pickle.
Consumers are going to have to have a job job before qualifying for a loan and they are going to have to make installment payments that will be higher per dollar that they borrow.
So, the bubble years are over and consumers have gotten a wake up jolt.