The Fed is set to vote Thursday on a number of key protections for credit-card customers. Issue #1: America's Money Crisis
Oh Gee, Wow! Hip, hip hurray! A crackdown on Credit Cards is comings soon on key protections for credit card customers. About time!
“NEW YORK (CNNMoney.com) -- Cash-strapped consumers might get some welcome news on Thursday when regulators vote to rein in controversial credit card practices.”
Oh. Might Get SOME welcome news.
“The rules are expected to take effect by 2010”
You mean we have to wait ONE year and that is only when it’s expected – no guarantees. Don’t these people understand that we are officially in a RECCESSION with a DEPRESSION looming the world bigger that 1929 the GREAT Depression?
“It will fundamentally change the relationship between cardholders and banks," said Peter Garuccio, a spokesman for the American Bankers Association.”
I don’t think so, but as Paul Harvey says you the rest of the story.
In the meant time …
If you are considering paying off Unsecured debt with an assets, like cash, your home equity, then after you read the article I urge you to see my Consumers StopDebtUSA website link.
"Relieving The Burden of Debt From Americans, One Family At A Time"
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The U.S. credit-card industry may pull back well over $2 trillion of lines over the next 18 months due to risk aversion and regulatory changes, leading to sharp declines in consumer spending, prominent banking analyst Meredith Whitney said.
If this has not happened to you it will. How will this effect you? Well your purchasing power is going to be affected one way or another. You see, its about your debt to income ratio. If you had a credit line of $10,000 and you used $2,000 of the 10K... your debt ratio is 20% but if the line is reduced to $4,000. well your debt ratio just went up to 50%! So now your percentage of debt went up and you are making the same income. Credit reporting bureaus use debt to income ratios to determine your FICO score among other considerations but this is a baggie. The net result is that anything you buy on credit is going to cost you more in interest payments. If you think you can beat the credit card companies by closing accounts you are not using that's not going to work either as closing credit lines is not looked on with favor by the Big 3....Experian, Equifax and TransUnion .
There are two solutions I present here.
1. For a fee we will take over your debt so that it is no longer yours but ours... for the detail go to www.creditcardrip.com. Listen to the audio files especially the 12 minute overview.
2. For a fee of $399. (payment options available) we will start a process guaranteed to improve your credit score and you will see results in 60-90 days! For the detail go to http://www.vrtechmarketinggroup.com/rgarcia/ click on the Credit Restoration Tab.
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There is so much talk on TV, Radio and on The Net about High Crimes forget mistermeaner this is as high as it gets. The nation is on the line. The most likely suspect responsible are in high office. The question at hand is are we a nation of Law…The Constitution or a nation run by criminals?
FLASH: Get The Stocks (For The Fed) for an understanding of what is in store
Yes, I'm well-aware that such a proposal does not meet the definitions that permit indictment under 18 USC 2385, as violence and/or force is not being proposed - unless you consider destruction of the nation's currency and tax base a violent act, of course. In that case Bernanke has a 20 year long date with someone named "Bubba" in his future. It couldn't happen to a nicer guy.)
This is the article from the Wall Street Journal…
Mod Fed Weighs Debt Sales of Its Own Move Presents Challenges: 'Very Close Cousins to Existing Treasury Bills'
If you are considering paying off Unsecured debt with an assets, like cash, your home equity, then read the article and THEN I urge you to see my Consumers StopDebtUSA website link.
"Relieving The Burden of Debt From Americans, One Family At A Time"
[Read More!]
Paulson and Bernanke continue to talk about "stabilizing prices" in the housing market, but the truth is that housing prices remain too high.
Paulson and Bernanke continue to dissemble about trying to "address the slowdown" in the economy.
Nowhere have we seen, however, either of these clowns admits the following facts:
1.
The Fed had the authority to prevent the excessive leverage and off]balance]sheet crap in the banking system, along with toxic securitization, that led to the crisis in the first place. They also had twenty years of foreknowledge of the results of NOT regulating same, from the S&L mess to LTCM and ENRON, all of which ended in the same place ] bankruptcy. NOW Bernanke claims that he must protect against "too big to fail" knock]in effects and says that regulatory reform must take place but The Fed was in no small part responsible for the original mess by explicitly advocating for the removal of regulatory safeguards and has continued to remove more of them on their own authority, including "23A" exemptions, continuing to this very day!
2.
Paulson was personally responsible for lobbying Congress and the SEC to remove the leverage limits that would have (and did, previously) prohibit Goldman Sachs and other firms from getting so far underwater AND so big as to become "too important to fail."
He has steadfastly refused to acknowledge his personal culpability in this matter, nor has he called for these limits to be reinstated. There is nothing wrong with the regulatory system that was in place originally ] it was intentionally circumvented and dismantled!
3.
NOBODY in government is willing to admit that the crux of the problem is that there was too much credit granted to people who could not possibly pay. This can only happen when the government is willing to protect those who go bankrupt when they make these poor decisions, because otherwise the market severely and immediately punishes those who imprudently grant credit, and serves as the appropriate and proper check and balance on this behavior.
4.
Statements by people like Rubin that "nobody could have seen this coming" (along with people like Bernanke and Greenspan) are pure lies. Anyone who has ever done business of any degree anywhere is fully aware that the loss in a bad lending decision happens when the loan is made ] not when it defaults. These people are knowingly lying to you, and both Congress and Americans in general are simply refusing to hold any of these clowns to account!
5.
Nearly all of the so]called "prosperity" of the last five years has in fact been excessive credit growth ] that is, it has been a fraud. There has been no material real "prosperity" ] that is, real wage and productivity growth ] during the 2000 decade thus far. That sucks and is a direct and proximate consequence of attempting to paper over the 2000 tech market implosion instead of allowing it to run its course and cleanse the system of malinvestment during the 1990s.
The bottom line is that there is no fix for this mess nor will the economy recover until and unless the bad debt is removed from the system.
There are only two ways you can accomplish that goal:
1.
You can find some way to magically improve the wages (real earnings power) of Americans. Not by "inflating" the money supply (which just raises prices, and faster than wages due to slippage!) but the actual productive output per person by 20% or so. This is impossible.
2.
You can force the bad debt to default and thus clear it from the system; once that has taken place lending can resume with a cleaner balance sheet for both borrowers and lenders.
There are no other solutions folks. #1 is not going to happen unless we discover something that today can only be called "magical thinking" (e.g. practical cold fusion, FTL travel, etc.)
#2 therefore will and must happen, and we have only two options as to how it happens ] it can either happen due to being forced into open by the market (that is, the government stops intervening and the market takes care of it) or we continue to screw around as we have and the risk of default extends into the government debt market itself.
Banks are now starting to cut back credit card lines and this is going to get a lot worse. We are simply not pricing this into the market ] not at all ] nor can we. There is absolutely nothing the government can do about this, and we must insist that the government quit lying about the root causes of this mess and what must and will come as a consequence.
The idea that the government can "manage" the way out of this mess is fanciful thinking, equivalent to belief in Santa Claus or The Easter Bunny.
Paulson and Bernanke are both full of crap.
Period.
Oh, and NBER now says we entered Recession in late 2007? Gee, finally, a year later, they vindicated my call from December 2007 in "The Year in Review" ticker? Better late than never.... just wait until you see my '08 edition!
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