[Silver Streak]

Originally Posted by dbotsfordtat

The credit crisis isn't about quailified buyers. The problem is between financial institutions, and is more accurately described as a liquidity crisis (money has to move thru the economy just like blood has to move thru the body). Many of the institutions are sitting on mountains of bad debt, this has resulted in a fear of lending between institutions ( you wouldn't lend money to someone if you weren't sure they could pay you back.) which has resulted in the current crisis, Think of it as a blocked artery and a resulting Heart attack. Many Banks and Businesses depend on overnight loans to conduct business but because of the lack of transparency amongst the many businesses the loans aren't being made (the blockage). That has now morphed into a crisis for the real economy (the heart attack), better known as a negative feedback loop. Businesses are laying off employees because they can't make payroll/buy supplies without the overnight loans, consumers have reduced spending because they are afraid of being laid off, ect... GM is getting a double whammy because their suppliers want to be paid before delivering nessesary parts and their customers are afraid to buy big ticket items because their afraid they're going to get laid off. I hope that makes sense, it does in my head.

Well said. Now you should go to congress and explain that to them, because I don't think they have a clue yet!