FINANCIAL EXUBERANCE

FINANCIAL EXUBERANCE

Our world is currently in a state of financial chaos due mainly the granting of credit to people and groups who did not have sufficient  means to honour or sustain their commitments to the lenders.

The lenders of funds contributed to our financial woes by encouraging people to commit themselves to borrowing  money to finance home purchases, car purchases, furniture purchases, clothing and grocery purchases creating a borrowing frenzy amongst people who over committed themselves in their quest to obtain goods on a buy now pay later basis.

Some Banks and Money Lenders apparently did not bother to check on a borrower's credibility status before granting loans.

This lending frenzy turned into a nightmare when borrowers defaulted on their commitments. 

Job losses exacerbated the problem because the jobless could not meet their financial commitments, thus compounding the problem.

The banks and other lenders were forced to resort to repossession of houses, vehicles et cetera which left the banks and lenders with property they could not dispose of.

The net result is that most countries worldwide are now caught in a financial nightmare. Affected governments are trying to remedy this problem by lending money to the banks. This action will help to remedy the problem but it will be an uphill battle.

Borrowers must curtail their credit purchases and learn to live within their means and banks and other lenders must only lend to credit worthy people and businesses.

SIDNEY WILLIAMS