Actually, if you were always a good credit risk, you will surely benefit from this mess, as you will get better rates, deals, etc. If you have been leasing cars on bad credit, getting by without putting money down or rolling trade-in deficits to new loans, hold on to your friggin’ hat.
A common scene goes like this:
You are a credit risk who is driving a Lexus that you should never have been given a lease on in the first place. You reach the end of lease and go to return the Lexus and now want another super duper lease special w/ no money down on a 615 credit score. They turn you way because you credit score is low and you have nothing to put down.
Now you go from driving a Lexus to taking the bus, because you have no cash on hand, you can’t get a car loan of any type, and your leased car has now been returned.
This is a big problem. A huge group of borrowers have no cash in the bank, are bad credit risks, and they’ve been driving expensive cars for 499/month for the past three years.
The ride is over. Unfortunately a modern recession has now come to mean that a person who has been driving a Lexus for the past three years with no money/credit is back to where they should be: taking the bus.
Or it means you can’t buy a 55" plasma on some stupid deferred interest plan until 2012. It means you are stuck with regular def for a few more years.
And for homeowners who had no money/credit, they have to go back to renting.
So alot of people lived a false reality for a few years. So, to me, recession means: Back to reality.