From "Borrow & Buy" Economy to "Cash & Carry"
In 2007, according to the National Association of Realtors, 45% of first-time homebuyers put no money down, and the median first-time homebuyer financed a massive 98% of the purchase. But no-money-down mortgages began fading in late 2007 and largely disappeared in the cruel winter of 2008. No wonder existing home sales fell 13.2%in July from last year while new home sales plummeted 35.3%.
The most revolutionary notion in commerce today is one of the oldest. If you want to buy something, you may actually have to pay for it. We are reverting from a "borrow and buy" economy to the "cash and carry" model of our grandparents.
From the Slate.com article "The Death of the Credit Card Economy: Car Leases, Student Loans, No-Money-Down Mortgages, and High Credit Limits Are Vanishing."