The Myth of the "Credit Crunch"

First let me say whoever invented the phrase "Credit Crunch" is a genius! The term implies pain, even to the layman, without requiring any measure of real failure.

I believe the Credit Crunch is a myth designed by a handful of banking/brokerage elites to avoid the consequences of imprudent lending. These consequences have found their way into securities (CDO/CDS) and have had broader impacts on the markets.

In short, the "crunch" is a scam to get Washington to socialize the risks of bad investments while Wall St. continues to make millions. Without the "crunch" (crisis) there would have been no bailout (intervention).

A simple Google search reveals the supporting evidence; deflation, precious metal liquidation, LIBOR rates, etc... But I'm also interested in the anecdotal that seems to go unnoticed.

Are banks paying double-digit interest rates to raise cash? No.
Are credit card companies soliciting less business? No.
Have the credit card companies arbitrarily lowered credit limits as feared? No.
How about consumer credit elsewhere? Still widely available.

And the there's this little gem I get in the mail a few days ago...


(interesting portions highlighted and no I don't drive a Saturn)

Here's the important text...

Anticipating the current credit crunch our company secured over $80 Million dollars in financing for out car buying customers.

The company is Phil Long and is a local car dealership chain. Interesting that they are able to come up with this kind of financing during this horrible credit crunch. Guess I better buy a new car now before all the credit is gone!

I also find the part about the option to "Walk away" interesting. Did they mean from my current car loan or from the appraisal/deal?

Anyhow, things are not as bad as we are being lead to believe.