I had not planned on referring to MarketWatch.com again so soon, but a post today caught my eye. I have not been able to contact the writer of the post, a certain cbently. So if you, cbently, would like additional attribution other than what I’m giving you right now, just let me know.

This astute Wall Street trader said today:

I have worried about this for some time, but I have become convinced that in the headlong rush to restart the excessively consumer credit-dependent portion of the economy people will be encouraged to spend by being given implicit assurances that there will be no significant consequences if they fail to repay.

For example, at one time some people may have worried that defaulting on a car loan would lower their credit score, thus impacting their ability to obtain credit again in the future. In these days, the lending standards will simply be officially lowered in order to invite them back to the consumption table. There is no significant consequence for failure to repay. By doing so we will create an even greater financial catastrophe.
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