Attention Congress: We don't want debt

I am amazed at what I see in the mainstream media in regards to lending. We have been told over and over again that the problem with our financial system is that banks aren't lending. They don't have the capital to lend, thus freezing lending and bringing our economy to a stand-still. Thus, the Treasury has injected billions into banks nationwide, whether they wanted the gracious gift or not. We were told that would allow banks to lend again and would get our economy moving. That was back in October.

Here we are in February, and the economy is in worse shape, and yet still the media tells us it's the bank's fault for not lending. They are paying themselves huge bonuses with the TARP money, CNBC trumpets. They are chartering private jets, Congress screams! The banks still aren't lending, they are abusing our money!

But what about this: what if consumers don't want any more debt! Americans are swimming in debt, whether it be credit card debt, auto loans, huge mortgage payments, or all of the above, American's do not want any more debt! Why would they?

Those Americans who are lucky enough to have employment are doing what they should be doing: cutting back their spending and paying off their existing debts (hmm, maybe our government should take notice). They are repairing their own balance sheets! And doing so without the help of a government bailout, mind you.

Besides that, the bigger issue is that people are scared to death. They are scared to apply for a mortgage, even if they are approved. They are scared to take on an auto loan, even if they need a new vehicle. They are scared to open that new pre-approved credit card account. Why? Because of the fear mongering by the media, most recently by President Obama, who ensures a cataclysmic disaster just about every time he opens his mouth. Who would want to take on additional debt in this environment?

Banks aren't lending because consumers don't want to borrow, plain and simple. On the commercial side, there is still demand for credit as a way to jumpstart capital intensive projects. Banks are more than willing to supply that capital, provided the borrower is credit worthy! Remember, one of the main reasons we got into this mess because of excessively loose borrowing standards, so naturally banks are being extremely cautious in the face of lending.

Then there are those who say "businesses rely on credit lines to make payroll!" My answer is this: businesses who rely on credit to make payroll deserve to fail, and fail miserably. Plain and simple. Such reckless and financially irresponsible methods for running a business should not go unpunished. Let them fail.

This speaks to a larger point. The American economy is based on credit, and credit is based on savings. This country has no savings, therefore this economy is a house of cards. Consumers don't want credit, they want financial security. The government needs to stop intervening in the healing process and allow that to occur.