Can someone with more knowledge of financial and credit markets please explain something to me?
If the credit markets are in such a crisis situation, with banks no longer lending to each other, and millions of small businesses are in danger of losing their vital credit lines, why is my mailbox still jammed every day with credit card offers?
Just today, I got an offer from one of my current credit card companies, offering me thousands of dollars in cash advance convenience checks at a really low interest rate and no fee. And I got another offer from another company, for a whole new credit card account. And this is just a typical day. Sometimes I get even more offers than that --- particularly since I own a small business, I seem to get several offers a week for small business credit cards and lines of credit.
Granted, Mrs. Yeoman Farmer and I have good credit ratings, have lived within our means for many years, and pay our bills on time. But we don't have a particularly large income. And these new credit lines they're offering us are completely unsecured, with no collateral needed.
I realize we've proven ourselves to be good credit risks. But the local shoestore is probably just as good of a credit risk. Why are they in danger of losing their credit, while we're still getting all this new credit thrown at us?