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Old 02-28-2009, 08:05 AM   #1
Duner
 
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this alone could lengthen the recession or worse...

http://www.foxbusiness.com/story/per...tes-consumers/

http://money.cnn.com/2008/09/26/news...tune/index.htm

"Credit-card companies continue to raise customer interest rates and fees despite a record-low target rate from the Federal Reserve and billions of dollars in bailout money that has been pumped in to the financial companies.

Though the Federal Reserve in December slashed its target rate to a range of between 0% and 0.25%, and a cut at the Fed usually means a drop in credit-card rates as well, many credit-card customers are instead seeing increases as companies try to offset increased losses in their card operations.

The problem, the card companies and industry representatives say, is that the weak economy and job losses have left more people unable to pay their credit-card bills, leading to greater losses. The increased rates and fees are necessary, they say, to make up the difference.

But it also means that companies that benefited from infusions of cash from U.S. taxpayers are now turning around and charging many of those taxpayers more for their services"




This is a total turn around from last year when lenders were willing to negotiate with card holders due the fact that garnishing wages and appropriating equity/goods to resell to the market has failed them in the sour economy.
When congress made changes to protect card lenders a few years ago which the banks lobbied for, credit card use dropped a shitload, like a ten year low or something stated and forclosures accellerated.
This is a reversal of loosening up credit, which the tax payers just paid for.
This will dramaticaly reduce consumer spending, hurt smbo's bad, and further destabilize our economy..imho

I would have thought banks had learned their lesson with oil futures biting their own asses and betting against other banks with short selling stocks, and ripping up the market more.

Not cool.
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Old 02-28-2009, 09:37 AM   #2
Corn Fed
 
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Perhaps the real bailout should have been directed to the consumer errr taxpayer....... They couldn't have misappropriated any of the monies, no extravagant bonuses or raises, may have made some payments - mortgages or credit card.
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Old 02-28-2009, 01:24 PM   #3
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Quote:
Originally Posted by Corn Fed View Post
Perhaps the real bailout should have been directed to the consumer errr taxpayer....... They couldn't have misappropriated any of the monies, no extravagant bonuses or raises, may have made some payments - mortgages or credit card.
Hell either people would have a bought a bunch of shit , or paid off shit or both!
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Old 02-28-2009, 06:57 PM   #4
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There is no short answer for this because of the many attributes to this equation.

Credit card companies profits are dwindling because of the increase in people loosing their jobs and not being able to pay, and eventually going into bankruptcy.

The only answer is to raise interest rates. This is exactly what will happen with the inflation that is taking place right now.

Inflation is an increase in the money supply. More money chasing the same amount of goods.

Another thing to think about. If you have 1,000 in an account that has an interest rate of 3%, and inflation takes off. That interest might not keep up with the inflation, and your cash is now worth less than it was last year.

There are so many problems with our economy and the way the government is attempting to keep it from hitting bottom. When the government can't keep it from hitting bottom anymore, it is going to fall much deeper than it would if they would have just kept out of it to begin with.

Raising taxes on the rich and employers does nothing but make them cut employees.

If you can't understand that last statement, as simple as it is, you will not be able understand anything about personal freedoms and how they are dwindling.

Here is another thing that our framers almost put in the constitution. To be able to vote, you must own property.

The reason they wanted to put that in, is because if people that don't own property can vote, they can vote to take it away from people that own it. We can see this happening right now.
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Old 02-28-2009, 07:07 PM   #5
Paragon
 
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Quote:
Originally Posted by hellsnat View Post
There is no short answer for this because of the many attributes to this equation.

Credit card companies profits are dwindling because of the increase in people loosing their jobs and not being able to pay, and eventually going into bankruptcy.

The only answer is to raise interest rates. This is exactly what will happen with the inflation that is taking place right now.

Inflation is an increase in the money supply. More money chasing the same amount of goods.

Another thing to think about. If you have 1,000 in an account that has an interest rate of 3%, and inflation takes off. That interest might not keep up with the inflation, and your cash is now worth less than it was last year.

There are so many problems with our economy and the way the government is attempting to keep it from hitting bottom. When the government can't keep it from hitting bottom anymore, it is going to fall much deeper than it would if they would have just kept out of it to begin with.

Raising taxes on the rich and employers does nothing but make them cut employees.

If you can't understand that last statement, as simple as it is, you will not be able understand anything about personal freedoms and how they are dwindling.

Here is another thing that our framers almost put in the constitution. To be able to vote, you must own property.

The reason they wanted to put that in, is because if people that don't own property can vote, they can vote to take it away from people that own it. We can see this happening right now.
Amen Brother!
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Old 03-01-2009, 09:41 AM   #6
MilleArp
 
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Quote:
Originally Posted by Duner View Post
http://www.foxbusiness.com/story/per...tes-consumers/

http://money.cnn.com/2008/09/26/news...tune/index.htm

..... The increased rates and fees are necessary, they say, to make up the difference. .....

Translated: Those who work, have money, and are financially responsible once again bear the burden of those who don't, and aren't.

Sorry, but I've been laid off several times in my life. A couple times, for many many months. I'v never lost my car or house, I was never hungry, I never took foodstamps or welfare.

A financially responsible person doesn't rack up excess debt when working. A financialy responsible person saves money for a rainy day.

I'm getting tired of entities rewarding people who are bad at math, and bad at life.

.
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Old 03-01-2009, 09:50 AM   #7
Paragon
 
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Rome was never conquered by outside forces, it self-destructed from within.
I fear we are on the same path.
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Old 03-01-2009, 09:58 AM   #8
fasterbusa
 
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What!!!!!

But its "CHANGE"!!!!!!

However, it does not look like much of a change to me, other than it is much larger in scope that it used to be. Is that the "change" they were referring too?

As MilliArp notes, people who are responsible and pay attention, are now having to pay for those who were not responsible, as a general rule and that does not seem fair or American at all.
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Old 03-01-2009, 11:19 AM   #9
MilleArp
 
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Originally Posted by Paragon View Post
Rome was never conquered by outside forces, it self-destructed from within.
I fear we are on the same path.

Agreed. History, sadly, repeats itself. We don't learn very well from our mistakes.

.
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Old 03-01-2009, 11:25 AM   #10
Paragon
 
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What!!!!!

But its "CHANGE"!!!!!!
Change... as in what is left from a dollar after Baraq takes his cut and redistributes it to those more "needy" than the person who actually earned the dollar.
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