THE TIGHTENING of credit markets and the resulting disruption it’s causing our nation raises the question: Do we rely too much on credit?
People who lived through the Great Depression believed in the philosophy of paying only cash for things they needed. Over the years, our society has turned greedy, and credit has helped fuel the “I want it now” generation.
Our government has not set a good example of financial soundness, since it also lives beyond its means. Today, the national debt is at a staggering $10,282,621,331,564.57 — if you got lost in all those numbers, that’s more than $10 trillion — and every day our government turns to foreign countries to give us loans to keep our country afloat.
As the government bailout unwinds itself on the national level, the question is: Can we use debt to bail out the debt of financial institutions? Time will tell.
Despite the financial doom and gloom, there are some positive stories that have not received much media attention.
There are hundreds of banks and lenders that stuck to conservative lending principles and have not been affected by the current financial situation. These banks looked beyond making a quick buck and only gave money to those who could afford it.
Emporia banks are examples of those that practiced conservative lending principles, and that is why we have a low number of foreclosures from local lending institutions.
Lyon County State Bank president Tom Thompson is encouraging people to go to Bankrate.com and view just how sound Emporia banks are.
While some mega-banks are struggling to keep their doors open, it is reassuring that Emporia banks used some good, old-fashioned common sense to keep business as usual.
Christopher White Walker
Editor & Publisher