Consumers now are faced with a deleveraged position within each credit transaction and this is a little known fact. All of the financial leverage is concentrated in the hands of the creditor and this has to change in order to improve the status of the U.S. Consumption economy. Borrowers and consumers need a system and process to level the credit and credit score playing field . In fact this would prove to be a win-win opportunity for consumers as well as creditors.
Here is a question to ponder. Which group in America is impacted the most from a lack of leverage in the marketplace? The hard working taxpaying working class. Which group in America would stand to benefit the most from a system that provides leverage in the marketplace? The answer is a no brainier it is the hard working taxpaying working class. Could it be that the working class have not because they ask not?
Leverage is one of the most powerful forces in creating wealth or extracting wealth for that matter and saving money in a business or consumer credit transaction. Consumers find themselves all to often on the extracting end of the transactions most of the time.
Here is the secret. Leverage is always at work, whether it is working in your favor or it is unleashed against you. There is no escaping its power, however as a consumer you must learn how to harness the power of leverage for your benefit. You have the power. Why do you think millions of dollars are spent each day via advertising campaigns to get your attention. The hope is that you will make a purchase albeit with a de-leveraged mind set.
High interest rates caused by inflation will level a devastating blow to the purchasing power of consumers. Validating the importance of seeking a means now to ramp up your ability to leverage your credit is paramount before the forces of inflation strike. The forces of deflation on the other end of the spectrum are just as wicked.
Consumers and borrowers would benefit greatly utilizing a process that offers leverage and transactional value to each purchase particularly when buying big ticket items.
The only practical and logical innovative means of creating leverage in the marketplace for consumers is to enable consumers to place their credit and credit score into an auction and bidding process, thus allowing the acceptance of bids from creditors before making a purchase. This would place a monetary value on ones credit and equally creating leverage in favor of the consumer. Consumers realizing the monetary value of their credit could in turn use this monetary value as leverage in the marketplace and as a bargaining chip. Also consumers would for the first time bring to bear the market force of multiple bidders/creditors as another more substantial means of leverage placed clearly in the hands of consumers.
Some may say oh no the power of leverage should never be taken from strong hands and given freely to the weak hands. Is it fair that a few can manipulate and extract wealth from the masses going forward in the 21st century as in times past? At some point in time the masses will awake from their financial slumber and assume their rightful place. A place where there is a level financial playing field benefiting all. This will make America financially strong again.
Here lies the solution to stimulating the economy.