Finance Spirit

The United States of America has one of the most stable economies in the world. It is a nation so powerful that Asians even nicknamed it ??the land of milk and honey.?? Can you imagine the number of jaws that dropped around the world when CNN confirmed of America??s rumored recession? Even its citizens were shocked. One by one, 50 year old companies started filing for bankruptcy and this has affected the economy of every other nation possible. Economists believe that one of the reasons for such is that almost everybody underestimated the power and limitations of credit and loans.

Newly elected president Barrack Obama promises America to worry no more. This Afro-American newly-elect president claims that he has been on the process of looking for solutions for the people of America even before he was elected. Just recently, he announced on a press conference his plans of creating The Consumer Financial Agency. He also admitted that indeed a large part of the recession was due to irresponsible borrowing of some citizens that affected even the most responsible borrower to date.

The Consumer Financial Agency aims to give protection to consumers by having a monitor of the American Financial market. The agency will see to it that credit companies will stop pushing consumers to have loans after loans giving them a hard time paying. It will also make sure that abuses like high interests, hidden charges and overcharged bank fees will come to a halt.

The president also pointed out that some credit companies have lured people into taking loans way above their capability to pay. This scheme left both the consumer with too many bills and the credit company itself having nothing to collect. He also mentioned in his statement the fact that a lot or people who borrow are negligent to the contents of their contract while stressing that some creditors often leave important information like hidden charges to the knowledge of clients.

The said announcement of the president gained the approval from the consumers?? side. They believe that they are actually in need of additional protection from the government when it comes to their loans and credits. On the other hand, banks and financial firms strongly disagree with the proposed agency, saying that it is still too immature for such. They also believe that the creation of the said agency will only come in between current innovations of the market.

If there will be a change in the way credit companies serve its consumers, the latter will have a greater chance for high credit score. Experts say that a lot of credit companies flourished due to dishonest business transactions. Practices like this have to stop for us to revive from the downfall of America??s economy.
Even the most stable of all is bound to fall. That is what we have all learned from the recession of America??s economy. Being a responsible borrower is not something new but something we need to do. Let us all help the President in bringing back the ??crunch?? to Washington apples. Meanwhile always check on your free credit report annually.

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