Thoughts, essays, and writings on Liberty. Written by the heirs of Patrick Henry.

October 9, 2008

Quote of the Day: The “That’s a Damn Good Question” Edition

by Stephen Littau

John Stossel writing for Townhall.com asks a very good question in his article, Try Free Enterprise.

Everybody talked about the “freeze” in the credit markets, but why, I wonder, were the cable news programs that repeated the credit-freeze mantra pausing for commercials from companies trying to lend me money? Ditech and LendingTree still hawk mortgages at under 6 percent. Some credit freeze.

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  • tfr

    Yah, and we’re still getting several pounds of credit card offers in the mail per week.

  • http://www.orderhotlunch.com Jeff Molby

    Fannie and Freddie are still gobbling up mortgages on the taxpayer’s dime, so the mortgage market will keep operating.

    The credit card market will keep operating because it’s so damn lucrative.

    The freeze is primarily in interbank lending and commercial paper, the ramifications of which are felt in most other credit markets.

    In other words, Stossel is merely pointing out one of the exceptions.

  • http://thelibertypapers.org/ Brad Warbiany

    Agreed with Jeff here.

    Not that you’d expect anything better from cable news, but it’s a gross oversimplification.

    It’s like saying “there’s snow in California” and having someone respond saying “I’m in San Diego right now, and the weather’s fine!” It’s the commercial paper market that is in trouble. Businesses who have existing short-term debt and want to roll it over (a common deal) are having trouble. The same goes for some businesses who keep credit lines open that they may have reduced. This is a very serious matter… That’s why I posted this on Tuesday, because what the Fed is doing there is potentially a much bigger story than the silly bailout.

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