“What will a more conservative lending climate mean to borrowers? This is a question that is being asked or at least talked about. How will people handle anything that is conservative? The 1929 market crash that started the great depression was caused because of borrowing that was not very conservative. How did people handle that? They learned to save and pay for what they bought. It was very difficult to borrow money for the next twenty years after 1929. People adjusted and did quite well though it did take a few years to get back to normal. That depression was caused mainly by excesses in the stock market.”
This minor problems we have today was caused by excessive borrowing in almost every part, from the government to the individual. The question really should be “Will we even try to go to more conservative borrowing or are we so addicted to borrowing now that it isn’t even possible to be conservative?
Since we have no control over what other people do then we might try using what worked after 1929. That is to save and learn how to live without borrowing. It worked then and will work today. Try it, you may like not having payments to make and to actually own what you have.