Credit card market a potential disaster-in-waiting.
By on Feb 29th, 2008 at 9:36 pm
Credit card market a potential disaster-in-waiting.
A new report issued recently by the Center for American Progress warned that, “as borrowing in the mortgage market slows, credit card borrowing is accelerating — a dangerous trend because borrowers still face weak income growth. That means the credit card market could eventually run into the same problems that now afflict the sub-prime mortgage market. ” Tonight, NBC News reported that credit card debt is nearing a record $1 trillion. The piece noted there is a “credit card binge across the nation as people use their plastic to stay financially afloat.” Watch it:
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February 29th, 2008 at 9:37 pm“Nope no Recession here” You are SOOO correct Mein Fuher Chimp. It is going to be SOOOO much worse than a Recession, words will fail.
Thank God William Arrogant Buckley is dead. It was the arrogant silver spoon fu(king scumbag Conservatives like this prick who made it possible to have a silver spoon scumbag like bush in office. May Buckley reside right next to Ronnie Raygun in their perpetual satanic lair. Fu(king scumbags.
February 29th, 2008 at 9:46 pmWake me when Obama gets elected!
February 29th, 2008 at 9:48 pm.
Bush is too busy paying attention, or not, to gas prices to even care about savings and income of the American People.
.
February 29th, 2008 at 9:50 pmWake me when Obama gets elected!
Obama’s National Finance chair is Penny Pritzker, billionaire Hyatt Hotel heiress who was the architect for the subprime mortgage scam.
Pritzker’s brother, J.B., is with Hillary Clinton’s campaign.
February 29th, 2008 at 9:51 pm.
So,
Can I charge my mandated health insurance?
.
February 29th, 2008 at 9:51 pmThe credit card market is already a disaster — it will only get worse.
February 29th, 2008 at 9:53 pmNot to mention the fact that several credit card companies have doubled the interest rates on people who ARE making their payments on time.
February 29th, 2008 at 9:54 pmPlease, enlighten us further regarding this wingnuttery.
Wingnut Economics for a $Trillion, Alex…
February 29th, 2008 at 9:56 pmBush doesn’t give a sh*t. He doesn’t give a sh*t, he doesn’t give a sh*t. he doesn’t give a rat’s a**!
Whatever crash and burn is happening to our economy, the Chimp and his cronies won’t be affected. Not in the slightest. They all have they monies safely stashed away and their well guarded ranches paid for. In short, they’ll sit high on the hill in their castles, while Joe Average suffers.
These bastard republicans don’t give a sh*t. The last seven years has guaranteed I will NEVER vote for a republican again. You can take that to the bank….if there are any left.
February 29th, 2008 at 10:00 pmAnd just when I was increasing my investment in my credit card! Damn!
February 29th, 2008 at 10:08 pm.
#10 Comment by GL2814 — February 29, 2008 @ 10:00 pm
… again?
LOL ;)
.
February 29th, 2008 at 10:10 pmSo are you saying that people overspending is the fault of a political party?
If anything the education establishment is to blame for not teaching personal finance and responsibility.
February 29th, 2008 at 10:13 pmPresident Obama (or Clinton) is going to have a real mess to deal with. Thanks, 2004 voters!!
February 29th, 2008 at 10:15 pmComment by muckdog — February 29, 2008 @ 10:13 pm
Yeah those teachers only work 180 days. You’d think they could at least teach the youngins’ to recycle all those predatory mailings.
February 29th, 2008 at 10:16 pmyou mean those 8,000 credit card apps. Citi and Capital One sent to me weren’t a good idea?
February 29th, 2008 at 10:18 pmSo are you saying that people overspending is the fault of a political party?
If anything the education establishment is to blame for not teaching personal finance and responsibility.
Comment by muckdog — February 29, 2008 @ 10:13 pm
The “ecucation establishment” is prevented from teaching the truth, by the monetary establishment, suckdog. you are still the stupidest ass that shows up here, and that’s saying something. this is a fascist government, and will not allow anything but the party line being taught.
February 29th, 2008 at 10:23 pmThe “ecucation establishment†is prevented from teaching the truth, by the monetary establishment, suckdog. you are still the stupidest ass that shows up here, and that’s saying something. this is a fascist government, and will not allow anything but the party line being taught.
Comment by Lefty Patriot — February 29, 2008 @ 10:23 pm
Eh, not really. More that there’s just no time for it. Also I think it should probably be common sense that it’s a bad idea to spend a great deal more than you make. I think this is more the result of people living at the means they have grown accustomed to despite a waning economy.
February 29th, 2008 at 10:32 pmObama’s National Finance chair is Penny Pritzker, billionaire Hyatt Hotel heiress who was the architect for the subprime mortgage scam.
Pritzker’s brother, J.B., is with Hillary Clinton’s campaign.
Comment by Jackie Morgan — February 29, 2008 @ 9:51 pm
Obama better get rid of this situation soon. This story is going to grow legs quickly.
February 29th, 2008 at 10:33 pmhttp://www.consortiumnews.com/2008/022708a.html
If anything the education establishment is to blame for not teaching personal finance and responsibility.
Comment by muckdog — February 29, 2008 @ 10:13 pm
What??? It’s not Mom and Dad’s fault?
Are you saying it’s YALE’S fault that Botch couldn’t control spending?
February 29th, 2008 at 10:35 pmComment by muckdog — February 29, 2008 @ 10:13 pm
congratulations MUCKDOG
you’re pre-approved for a capital one credit card with a spending limit of a zillion dollars!
have fun, balls sniffer!
February 29th, 2008 at 10:42 pmPlease, enlighten us further regarding this wingnuttery.
I’d be happy to enlighten you, but facts can hardly be discounted as wingnuttery.
Obama’s Subprime Crisis
Read about it:
http://www.consortiumnews.com/2008/022708a.html
http://flashpoints.net/index.html#2008-02-20
Listen to it:
http://aud1.kpfa.org/data/20080220-Wed1700.mp3
Listen to the latest about it:
http://aud1.kpfa.org/data/20080228-Thu1700.mp3
More about the Pritzkers:
http://daydreampolitics.org/?q=node/1295
More about the money behind Obama:
http://www.blackagendareport.com/ index.php?option=com_content&task=view&id=529&Itemid=34
Penny Pritzker, chairman of Superior Bank which was closed by the Office of Thrift Supervision (OTS) and the Federal Deposit Insurance Corporation (FDIC) was named Receiver. Superior Bank developed the original mortgage securitation package, putting mortgages into a bond and then selling the bond. Along with Merrill Lynch and their accountants at Ernst & Young LLP began the process of turning the American Dream into the American Nightmare for millions of low and middle income Americans.
http://www.inthesetimes.com/article/671
http://www.bostonnow.com/ blogs/ oldmole/ 2008/ 02/ 12/ obama-campaign-finance-chair-involved-in-superior-bank-sampl-scandal
February 29th, 2008 at 10:50 pmThank your local Republican for the destruction of America.
February 29th, 2008 at 10:51 pmI wonder if countries like Canada, England , France , Denmark , Sweden, Spain, Australia and Germany (all being socialistic countries) have the problems the United States has? We are not free when we are enslaved to the corperations. Is the perfect storm forming? Mortgage crisis , Credit problems, dollar sinking, stock market plunging, Unemployment increasing, just to name a few indicators. I think it’s the corperations that might take the greatest hit for beening the greedest generation since the early twenties.
February 29th, 2008 at 10:55 pmSo are you saying that people overspending is the fault of a political party?
If anything the education establishment is to blame for not teaching personal finance and responsibility.
Capitalism as legislated and practiced by Republicans dissuades, no, it REQUIRES citizens to ignore responsibility and common sense in money matters. You can’t have the kind of growth and profits that Republicans require in order to siphon wealth to the few at the top without removing all safeguards.
Our economy has been restructured by Republicans to pretty much guarantee the coming crash. It’s not like this wasn’t predicted as long ago as the 1980s when Reagan was touting supply-side economics and Repubs were beginning deregulation and the privatizing of govt services and properties.
Stop blaming people who spend money, who buy the products. It’s their purchasing that grease the machine of capitalism and make the economy go around.
February 29th, 2008 at 11:12 pmForeclosure processors, collection agents, assistants to bankruptcy judges, eviction sheriffs’ deputies, funeral home workers (all the upcoming suicides): growth industries!
February 29th, 2008 at 11:47 pmhttp://www.msnbc.msn.com/id/23415510/
And even normally affordable food like pizza is increasing in price.
March 1st, 2008 at 12:00 amHold on to your hats folks. We are heading for a depression, not a recession. But, since it will finally hit once Obama takes office, the Republicans will say that it is all his fault.
March 1st, 2008 at 12:17 amObama’s National Finance chair is Penny Pritzker, billionaire Hyatt Hotel heiress who was the architect for the subprime mortgage scam.
Pritzker’s brother, J.B., is with Hillary Clinton’s campaign.
Comment by Jackie Morgan
So, I guess that makes Obama responsible for the subprime mortgage scam. And this woman was hardly the “architect” of the scam. She may have been a participant, but she most certainly was not the architect.
So Jackie, what are you going to do? Are you going to vote for McCain? How about Nader?
March 1st, 2008 at 12:20 amOtoh, soup kitchen futures are booming!
March 1st, 2008 at 12:21 amTrickle down economics! Look what’s trickling down!
March 1st, 2008 at 12:26 amBut, since it will finally hit once Obama takes office, the Republicans will say that it is all his fault.
Comment by bilbobaggins — March 1, 2008 @ 12:17 am
it’s a given that that is the reasoning behind so much of the
March 1st, 2008 at 12:37 amprocrasatination and obfuscation and manipulation and hesitation etc…
Comment by NOLIESPLEASE — February 29, 2008 @ 10:55 pm
Try using spellcheck. It will answer most of your questions.
March 1st, 2008 at 1:00 amSay Hello to Mr and Mrs Walkaway
March 1st, 2008 at 1:15 amI never get Americans. I’ve been here forever but I am always amazed.
Don’t people realize that 22% interest is BAD?
March 1st, 2008 at 1:39 amComment by muckdog — February 29, 2008 @ 10:13 pm
Only a Republican wingnut sheep, mindless zombie can blame the schools for this credit card disaster in the waiting. Personal responsibility is a bunch of crock and you know it. If they were TRULY interested in this ethos, then they wouldn’t bail out corporations with subsidies and such bullshit like that. Yet, you stay silent when they do so when corporations are about to go bankrupt. WHERE in HELL is your talk of personal responsibility then?
March 1st, 2008 at 1:50 amI bet that man lost his job to outsourcing, but according to muckdog, it’s his own fault for having a job that might be outsourced. He never blames the REAL Establishment, but always in knee-jerk reaction goes after targets that the GOP loves to hate on: trial-lawyers, the education “establishment,” Democrats, anti-war protesters, etc.
people like muckdog have made hatred as American as apple pie…
March 1st, 2008 at 1:54 amOK, Mucketymuckdogshit, I understand this fixation you seem to have with personal responsibility but, why don’t you apply those same principles to George Bush and Dick(head) Cheney. Add Michael Mukasey and a host of others. Killing is killing. It doesn’t matter what label you perform it under. Murder is murder.
March 1st, 2008 at 2:05 am“The Gramm-Leach-Bliley Act strikes down these walls and opens up new competition. It will create wholly new financial services organizations in America. It will literally bring to every city and town in America the financial services supermarket.
“Americans today spend about $350 billion on financial services – on fees and charges and interest. Most people who have looked at the potential for providing financial services under a more rational system believe, as I believe, that there are tens of billions of dollars of savings for the American consumer that will be produced by the reforms of this bill.” -Phil Gramm 1999
March 1st, 2008 at 3:24 amEh, not really. More that there’s just no time for it. Also I think it should probably be common sense that it’s a bad idea to spend a great deal more than you make. I think this is more the result of people living at the means they have grown accustomed to despite a waning economy.
Comment by erock — February 29, 2008 @ 10:32 pm
Well, you’re wrong. “Common sense” ins’t so common, and the establishment has poured billions of advertising do;;ars inot brainwashing Aemricans from the day they’re born, without allowing the education system to tell us the truth of it.
March 1st, 2008 at 3:33 amThe gold standard will fix this! Ron Paul! Ron Paul!
*shakes head*
March 1st, 2008 at 4:48 amWhen the Bush backed bankrupcy bill comes into play, we will see what “the haves and the have nots” really means.
March 1st, 2008 at 8:21 amGeorge and his cronies will control America’s total wealth. And he may be the only person in the ball park watching his Roger Clemens.
Well, you’re wrong. “Common sense†ins’t so common, and the establishment has poured billions of advertising do;;ars inot brainwashing Aemricans from the day they’re born, without allowing the education system to tell us the truth of it.
Comment by Lefty Patriot — March 1, 2008 @ 3:33 am
Allowing? What is stopping the education system from discussing it? The economics course my high school offered actually had a personal finance section in it.
March 1st, 2008 at 9:02 amWhy should people be any more responsible borrowers than their government?
March 1st, 2008 at 9:05 amThis is what happens when you ship the good jobs overseas.
People have an evolutionary imperative to maintain status - and our media shows us a (fantasy) world of boundless wealth. Desperate to maintain status, with manufacturing (and now tech) jobs going to semi-slave workers in China, people are having to borrow from their cards and houses to maintain the illusion of “keeping up with the Joneses”.
March 1st, 2008 at 9:14 amIf anything the education establishment is to blame for not teaching personal finance and responsibility.
Comment by muckdog — February 29, 2008 @ 10:13 pm
“Go shopping” - G.W. Bush.
March 1st, 2008 at 10:02 amAllowing? What is stopping the education system from discussing it? The economics course my high school offered actually had a personal finance section in it.
Comment by erock — March 1, 2008 @ 9:02 am
March 1st, 2008 at 10:19 amand when was that? I never had such a course, and youngsters today certainly don’t have such a course. Your anecdote is not universal, by any means. You must think we live in a free country. That isn’t the case.
What is stopping the education system from discussing it?
No Child Left Behind…
March 1st, 2008 at 10:39 amWhat is stopping the education system from discussing it?
No Child Left Behind…
Comment by katy — March 1, 2008 @ 10:39 am
just so.
March 1st, 2008 at 10:52 amand when was that? I never had such a course, and youngsters today certainly don’t have such a course. Your anecdote is not universal, by any means. You must think we live in a free country. That isn’t the case.
Comment by Lefty Patriot — March 1, 2008 @ 10:19 am
Look, there’s absolutely nothing stopping schools from teaching personal finance. Like I said, a course that touched on it was offered in my time. Yes, its true there’s nothing motivating them to do so, but likewise there’s nothing preventing them from doing so either. If you want to point to underfunding in poorer areas as a reason why they don’t teach such courses…fine. I suppose that the financial constraints could be attributed to the “system” but I don’t think that’s really what you were driving at.
I actually taught in a high school 3 years ago that also offered a course in economics with some attention paid to personal finance. It wasn’t required and certainly wasn’t popular but it was there.
March 1st, 2008 at 11:44 amWhat use has personnal responsability if oil rises a 300% in seven years, groceries, housing, everything rises in hyperbloated rates except salaries? Why is responsible Average Joe, if the POTUS takes no responsability? If you are, say a nurse, changing financial habits, or house, or states, few can be done if you earn very few money working 12 hours per day.
March 1st, 2008 at 12:00 pmI don’t carry balances on my credit cards currently but I’m afraid the cold wind will blow all of us over when this house of cards collapses. Some of the nation’s credit card debt is from medical expenses. That can happen to anybody.
March 1st, 2008 at 12:57 pmOnce the purchasing power of Americans drops low enough, China and OPEC won’t have a market for their goods and won’t have much incentive not to call in the loan Bush took from them to pay for his disasters in the Sandbox.
After that, whatever wealth is left will be swept up by the haves and the have-mores.
Bush’s legacy.
Why is responsible Average Joe, if the POTUS takes no responsability? If you are, say a nurse, changing financial habits, or house, or states, few can be done if you earn very few money working 12 hours per day.
Comment by Evil Spaniard — March 1, 2008 @ 12:00 pm
Now there’s something I can agree with. If the cost of living rises so high that individuals have no choice but to go in debt that is one thing. That very well may be what we are seeing here in some cases. The idea that the “system” is somehow brainwashing people into spending beyond their means is another scenario entirely.
March 1st, 2008 at 1:48 pm1) Knowing that the “good” credit cards carry interest at around prime plus 9% and others are more like 20%, this is really chilling. This could hit the issuing banks hard when the market collapses.
2) Under the new bankruptcy, it is harder to have credit card debt forgiven. That means that folks will loose elsewhere - in other words, the people under credit card debt won’t be spending which means that their spending won’t be propping up our economy.
3) Of course, borrowing money to pay it back later is the hallmark of the Bush Administration. All they are doing is following the example of our supreme leader.
March 1st, 2008 at 4:40 pmThe idea that the “system†is somehow brainwashing people into spending beyond their means is another scenario entirely.
Comment by erock — March 1, 2008 @ 1:48 pm
But it is a scenario worth investigating. If advertising didn’t work, it wouldn’t be a multibillion dollar industry. when the president of the United States declares tha the solution to 9/11 is to “go shopping”, doesn’t that tell you anything about the “system”?
March 1st, 2008 at 5:28 pmBut it is a scenario worth investigating. If advertising didn’t work, it wouldn’t be a multibillion dollar industry. when the president of the United States declares tha the solution to 9/11 is to “go shoppingâ€, doesn’t that tell you anything about the “systemâ€?
Comment by Lefty Patriot — March 1, 2008 @ 5:28 pm
Yes, this is true, it is good for the economy (on the surface) when people are spending, but to suggest that the “system” has somehow permeated our education system and disallowed any mention of personal financial responsibility while bombarding the population with subliminal messages to spend is quite a leap from there. More likely this is just the result of a terribly slow economy and a nation full of people who have grown accustomed to a higher style of living. That’s not to say that the “system” isn’t to blame…it’s responsible for the sagging economy, I just don’t think it involves the massive conspiracy that you’re suggesting.
March 1st, 2008 at 7:52 pmDuring Japan’s credit recession of just over five and one half years, their stock market nearly halved, and during Germany’s credit recession of just over three and one half years, their stock market fell by over one third.
March 1st, 2008 at 9:29 pmAs a broad conclusion, if we take the averages of how long banks slowed-down their lending and how far the stock market fell, we conclude that
the credit downturns lasted 4.6 years, and the stock markets contracted by 40%. Japan’s economy is roughly 1/3 the size of America’s and Germany’s is roughly 1/5 the size of America’s. Neither country went into negative savings the way America has. Are you starting to get the picture? Bernanke doesn’t have the firepower to stop this economic collapse. By August of this year, the bottom will have fallen out.
giving credit cards to people with questionable ability to pay them off, so you can bilk them for outrageous late fees and interest…sounds like a perfectly sustainable business model to me…
why is it that these days, it seems like the general model for capitalism has become one giant ponzi scam?
March 3rd, 2008 at 2:24 am