Here we go again, Dow plunges

[Ail]

JHawkNH said:

Ail said:

Credit isn't as widely used in the rest of the world as in the US ( not everyone is as stupid thank god, I mean how many brain cells do you need to carry a balance on a credit card with 18% APR ???) especially in Europe so customer spending shoudn't decline as sharply there.

In some part of the world people actually know what the word 'savings' mean...

 

 

 

 Want to explain to me why Europe is in a recession then?  And why the gorvernments of Europe rescuing banks the same as the US?

The truth is there is plenty of blame to go around.  From Republicans to Democrates.  High income to low income homeowners.  And Leanders to Homebuyers.  Every group had a hand in making this mess, Everyone is in this togather so we need to try and stop placing blame for now and work on getting the problem fixed.

Overall business market will act the same way as the US as business relies heavilly on credit.

Customer spending won't be affected as much as in the US though ( european economies aren't as dependant on customer spending to start with too anyway as there isn't as huge of frenzy to live above your means over there as there is in the US).

 

All I'm saying is that in most european countries people aren't relying on a credit card for their day to day purchase ( most credit card in france for example work the same way as American Express, you have to pay the whole balance at the end of the month, no balance is carried over).

Main things customer use credit for is :

- car purchase ( and actually those that can afford paying whole price upfront do so)

- house purchase

- expensive purchase but using store credit ( the store offers the credit, the customer does not have to go looking for it). And only a small fraction of the population uses this...