Because BushCo has lined up an Army of Attornies whose only job is to prevent you from declaring Bankruptcy. They are in cahoots with BushCo's Judicial Appointments. The usery fix is in, with special focus on the destitute and indigent. At taxpayer expense, of course.

But Nutbag, you forgot to mention Bush holding a gun to the heads of every douche who over bought. Do you people ever take responsibilty, or would you like the Federal Goverment to let your dog outside to crap too?

Banks who loan to such people deserve to lose money.

Indentured servitude anyone? Hey I got a better idea, debtors prison!

Banks who loan to such people deserve to lose money.

I agree. But the banks don't. Let's see if the credit card companies are held responsible for their idiocy. They're going to give easy credit to people known not to be able to handle it.

And when the people have maxed out their new cards and aren't paying the bills, as everyone knows they will, guess who's going to go crawling to the government for a bailout?

I'm sure we'll hear a few rounds of "No one could have imagined!!"

It would serve these predatory credit card companies right if the people on the verge of foreclosure used the credit cards to make their mortgage payments.

Indentured servitude anyone? Hey I got a better idea, debtors prison

I believe Halliburton has already received the no-bid contract to start building them.

Government wouldn't bail out the banks, if that's what you're implying. The banks would just write them off as bad loans.

I saw a paper on this very thing at work yesterday, that there is a dearth of creditworthy borrowers seeking loans. Even companies are more inclined lately to finance expansion projects with cash flow, instead of through borrowing. Part of the problem is that 2-year loans are more expensive than 10-year, and short term commercial paper is almost impossible to roll. Therefore, banks look to lend elsewhere.

Once the Fed gets off their ass and does something about the crunch in the credit markets, you'll start to see these offers to subprime borrowers disappear. Hopefully.

"there is a dearth of creditworthy borrowers seeking loans."

RIR,
Does that suggest to you they're afraid of the future?

(I guess a better question is "what do you make of that?)

A lot of things. First, the overnight rate is way too high--it should be no more than 4.25%, and at 5.25 things get screwy. Think about it--the 10-year treasury is 4.47%--overnight paper is 5.25%?!?!? So--what's the very predictable result? A seizing up of short-term lending, that's what. Second, why should banks extend credit to anyone on a short-term basis, when they can get 5.25 just zipping funds back and forth in the overnight system? Third, firms most susceptible to swings and anomalies in the short-term market are getting killed--construction companies, mortgage originators, US auto credit companies that are dollar-denominated--but most of the economy as a whole doesn't notice a problem. Yet, anyhow.

But Nutbag, you forgot to mention Bush holding a gun to the heads of every douche who over bought. Do you people ever take responsibilty, or would you like the Federal Goverment to let your dog outside to crap too?
on 9-13-01 Bushling stood atop a smoldering pile of rubble burying 3000 corpses and directed us to go shopping. Folks are doing their duty for God and their country... The credit card companies are willing to help any way they can.

This is going to be just like Reganomics... fluff economy... no real substance... everything bought on credit.

there is no longer bad loans, with bankruptcy changes banks will get their money. you have to pay back CC loans now. therefore, these are guaranteed loans, backed by federal bankruptcy laws.

good business to be in, charge 25 to 30% APR for guaranteed loans

Indentured servitude anyone? Hey I got a better idea, debtors prison!

Posted by FreedomH8ter at 2007-09-05 11:14 PM |


I like your idea....more people would look before they leap, that would be better for all of us. Maybe we never should have gotten away from it in the first place.

Great INCUBUS, you and the rest of the Republicans can lead us directly into the past. Not just the past but the worst ideas of the past. What's next, selling you children into slavery????
I'm wondering how many "irresponsible" military people or veterans are in trouble financially?
I really wonder why a young person would fight for a country that allow predatory corporations to rob them of their future. This nation is becoming hostile towards its own citizens.

This is going to be just like Reganomics...

Posted by bushskank at 2007-09-06 02:24 AM | Reply

Let's hope so.

Reaganomics lead to the robust economy of the 1990s -- you know, the good old days you like to credit to Clinton and his vacation from history.

I used to speak to borrowers in this category as part of my job and quite often when I asked them about their credit, they'd say "I've got great credit. Like 10 cards. Everyone wants to lend me money." They'd have like $70K in credit card debt and a 520 FICO.

Offering these people another credit card just validates their behavior in their minds. These banks seem to be trying to lose money.

""These banks seem to be trying to lose money.""

They know they will be repaid eventually because of the new bankruptcy laws. It is just saddling someone with long term debt.
We ought to go back to the days when 18% was the maximum interest allowed by law and banks made money by investing instead of fees.

Sully,
Having been in the business you already know that even with a high default rate these cards can still be profitable for the lenders.

They just charge 30 percent interest on those who will pay the minimum balance.

I agree that it's predatory. I find it interesting that all the Lefties here get upset about banks offering credit cards but never chance a breath about all the other abuses that are far worse.

Rent-to-Own comes out at more than 1200 percent, Refund Anticipation Loans, Car Title Loans, Check Advance Loans, etc., can go as high as 3500 percent.

Oh, but it's the big evil banks charging 30 percent on high risk borrowers that are evil.

banks made money by investing instead of fees.

Posted by danni at 2007-09-06 09:44 AM | Reply

HAR~! HAR~!

Danni is now advocating private investment? Come on Danni, make up yor mind.

Private companies investing capital to make a profit? When they do that you always screech that it somehow sends jobs to China.

"Rent-to-Own comes out at more than 1200 percent, Refund Anticipation Loans, Car Title Loans, Check Advance Loans, etc., can go as high as 3500 percent."

Red Alert! Vernon calculator in use!

Hans

I agree. But the banks don't. Let's see if the credit card companies are held responsible for their idiocy. They're going to give easy credit to people known not to be able to handle it.

And when the people have maxed out their new cards and aren't paying the bills, as everyone knows they will, guess who's going to go crawling to the government for a bailout?

I'm sure we'll hear a few rounds of "No one could have imagined!!"

Posted by Norm_ at 2007-09-05 11:30 PM | Reply

I am sure whoever is the occupant of the whitehouse will readily give a bailout of taxpayer dollars to these scumbags.

I reference the S&L bailout as a prime example. And just who benefitted from those S&L $$$$... why the Bush Crime Family.

Thank you Ronnie Raygun.

Multiply by 0.00000036, carry the 2, drop the 6, divide by Pi taken to the 832nd place, add in the square root of the total area (in cubits) of the Great Pyramid at Giza, divide by the number of steps leading to the back entrance of the state capitol in Montpelier, factor in the moons of Venus and Sirens of Titan...

This is going to be just like Reganomics...

Posted by bushskank at 2007-09-06 02:24 AM | Reply

Raygun and Bushco are responsible for over 70% of the national debt.

Way to go! Conservative economic policy at its finest... borrow from your children and grandchildren to give tax cuts to billionaires!

Red Alert! Vernon calculator in use!

Hans

Posted by Hans at 2007-09-06 09:50 AM | Reply

When will he learn that sitting on the calculator and doing a "one cheek sneak" on the keys is not going to give an accurate answer?

Oh well more fine conservative economic policy.

Red Alert! Vernon calculator in use!

Hans

Red Alert! Hans back with nothing to say!

WISGOD,

In the fifties, Banks got by on thin margins and few fees. Today the credit card business is supreme, raking in huge margins and punishing the poorest with endless fees above and beyond their integral high interest rates. People who were offered cards with little or no ability to pay it back, might use them in an emergency to buy food and/or health care for their children. Once a payment is overdue it triggers fees which can top 100% interest/annum.

The high fees used to be illegal. But today, thanks to bribery of our Government they are back in vogue. To further indenture the poor, Bankruptcy laws have been changed.

Just how much scandalous gouging is going on? Well my Father pissed and moaned when his mortgage interest rate went from 2.5% to 3.25%. Who could get such a loan today? Hell, today Wells Fargo wants to charge you five bucks to cash one of there own Cashiers Checks, even if you have an account with them. They are out of control and its all legal because the Banks bribe our elected Representatives.

Reminds me of the H.L. Mencken quote, "nobody ever went broke underestimating the intelligence of the American people".

"Rent-to-Own comes out at more than 1200 percent, Refund Anticipation Loans, Car Title Loans, Check Advance Loans, etc., can go as high as 3500 percent."

Refund anticipation loans pay ridiculous rates. It is a sleazy business. When I first got out of school, I worked on prior debt cases for Beneficial's RAL department. Most of my time was spent making fraud victims jump through hoops to prove their identity after Beneficial had given a RAL out under their SSN to someone else, who obviously hadn't been asked to prove his identity.

I wish the religious right would make itself useful and demand usury laws.

"Wells Fargo wants to charge you five bucks to cash one of there own Cashiers Checks, even if you have an account with them. They are out of control and its all legal because the Banks bribe our elected Representatives."

I currently bank at USBank and they charge my people $5.00 to cash the paychecks I cut (I run a small business on the side).

I even talked to my bank once and told them that even though I hold an account there, I thought it was insane they get a $5.00 cut off of the checks I write.

I realize most people have bank accounts these days, but hell even I get $20-30 checks at times, and I'd prefer to just walk into the bank it's drafted from and cash it. Not possible these days without taking it in the rear $5.00.

I need to research a local credit union who doesn't, but I've been told this is the norm now.

But yes, I'd agree... endless fees anymore.

In effect your employees are being robbed of $5.00 out of their pay checks. Since you choose where to bank then really you should reimburse them.

Unfortunatly, what you do with the check after I cut it isn't my problem :)You could deposit it, cash it or perhaps roll it up and snort something.

Sounds cold, but ... that's how I feel.

Also Danni, as I said this is pretty much status quo for every bank I've frequented around here. I do need to investigate local credit unions as I said though, because the $5.00 fee urks even me.

The fees are even more entirely disgusting when you factor in how much of the original basis for "fees" has been rendered moot. Not like anyone has to do much paperwork on a check cash, or transaction with all the ATM's, computer networks, and such.

$5.00 bucks to transfer less than 10kb worth of data? Thats not exactly efficient.

I remember when charging for ATM/debit transactions became more mainstream... I thought they were kidding.