Comments on: Credit Card Debt: Next Big Hit to Banks? http://www.nakedcapitalism.com/2008/10/credit-card-debt-next-big-hit-to-banks.html Mon, 23 Nov 2009 09:12:43 -0500 http://wordpress.org/?v=2.8.4 hourly 1 By: Marlene http://www.nakedcapitalism.com/2008/10/credit-card-debt-next-big-hit-to-banks.html#comment-48660 Marlene Tue, 09 Jun 2009 19:20:39 +0000 http://www.nakedcapitalism.com/2008/10/credit-card-debt-next-big-hit-to-banks/#comment-48660 Banks and finance companies will keep making money with credit card interest rates that are comparable to payday loans. The American consumer loves to spend money and with housing prices at all time lows, home owner equity has dropped dramatically. We operate and educate consumers about credit card debt and can be reached at <a href="http://www.creditcarddebt.org" rel="nofollow">creditcarddebt.org</a> Banks and finance companies will keep making money with credit card interest rates that are comparable to payday loans. The American consumer loves to spend money and with housing prices at all time lows, home owner equity has dropped dramatically. We operate and educate consumers about credit card debt and can be reached at creditcarddebt.org

]]> By: fatbear http://www.nakedcapitalism.com/2008/10/credit-card-debt-next-big-hit-to-banks.html#comment-18743 fatbear Wed, 01 Oct 2008 18:34:00 +0000 http://www.nakedcapitalism.com/2008/10/credit-card-debt-next-big-hit-to-banks/#comment-18743 And let us not forget car loans/leases - many loans are equiv to sub-prime (72 months with roll-in of balance on old car, and rapidly deteriorating collateral), and the leases may be even worse (SUVs, etc., with re-sale value FAR below what's baked into the lease bonds) - this hits bondholders, banks, and GM/Ford/Cerberus And let us not forget car loans/leases – many loans are equiv to sub-prime (72 months with roll-in of balance on old car, and rapidly deteriorating collateral), and the leases may be even worse (SUVs, etc., with re-sale value FAR below what’s baked into the lease bonds) – this hits bondholders, banks, and GM/Ford/Cerberus

]]> By: Cash Mundy http://www.nakedcapitalism.com/2008/10/credit-card-debt-next-big-hit-to-banks.html#comment-18740 Cash Mundy Wed, 01 Oct 2008 18:24:00 +0000 http://www.nakedcapitalism.com/2008/10/credit-card-debt-next-big-hit-to-banks/#comment-18740 Thanks for the heads-up, came in mighty handy. We <b><i>Evil Shorts</i></b> was a-fixin to get bored with knocking over banks and such, but <i>credit card companies</i>? You mean those people who send out all that annoying junk mail? The ones I saw advertising on TVs at local bus-shelters? (them TVs is long-gone: I reckon the local <i>prison-population XXXXX-XXXXX</i> downtown bus-riders did for'em right quick.) The ones who kept sending my pizza-drivin' friend, now surfing disability, card after card? (She used them to go long on silver with, then went bust.) <br/><br/><b><i>Those People?</i></b><br/><br/>+MAPR, +AXPPT and +VOJ is what this here Evil Short has to say about those people...<br/><br/> <i>Suerte y buen provecho, amigos y amigas!</i> Thanks for the heads-up, came in mighty handy. We Evil Shorts was a-fixin to get bored with knocking over banks and such, but credit card companies? You mean those people who send out all that annoying junk mail? The ones I saw advertising on TVs at local bus-shelters? (them TVs is long-gone: I reckon the local prison-population XXXXX-XXXXX downtown bus-riders did for’em right quick.) The ones who kept sending my pizza-drivin’ friend, now surfing disability, card after card? (She used them to go long on silver with, then went bust.)

Those People?

+MAPR, +AXPPT and +VOJ is what this here Evil Short has to say about those people…

Suerte y buen provecho, amigos y amigas!

]]> By: satan http://www.nakedcapitalism.com/2008/10/credit-card-debt-next-big-hit-to-banks.html#comment-18738 satan Wed, 01 Oct 2008 18:08:00 +0000 http://www.nakedcapitalism.com/2008/10/credit-card-debt-next-big-hit-to-banks/#comment-18738 Credit rating agencies, both public and private, have been so wrong that no sane person will believe FICO scores and credit ratings anymore.<br/><br/>I think we might be on the edge of a debtor "uprising" of the kind we have never seen before. All models based on historical data and past consumer behavior/ attitudes is useless for predicting the future. We have never been in anything remotely similar before. Credit rating agencies, both public and private, have been so wrong that no sane person will believe FICO scores and credit ratings anymore.

I think we might be on the edge of a debtor “uprising” of the kind we have never seen before. All models based on historical data and past consumer behavior/ attitudes is useless for predicting the future. We have never been in anything remotely similar before.

]]> By: satan http://www.nakedcapitalism.com/2008/10/credit-card-debt-next-big-hit-to-banks.html#comment-18737 satan Wed, 01 Oct 2008 18:01:00 +0000 http://www.nakedcapitalism.com/2008/10/credit-card-debt-next-big-hit-to-banks/#comment-18737 I do not think that credit cards will be able to collect debts. People have lost all faith in the justness of the system and they are broke. This is going to be interesting.. I do not think that credit cards will be able to collect debts. People have lost all faith in the justness of the system and they are broke. This is going to be interesting..

]]> By: fav.or.it http://www.nakedcapitalism.com/2008/10/credit-card-debt-next-big-hit-to-banks.html#comment-18726 fav.or.it Wed, 01 Oct 2008 15:38:00 +0000 http://www.nakedcapitalism.com/2008/10/credit-card-debt-next-big-hit-to-banks/#comment-18726 nice<br /><br />sent from: fav.or.it nice

sent from: fav.or.it

]]> By: doc holiday http://www.nakedcapitalism.com/2008/10/credit-card-debt-next-big-hit-to-banks.html#comment-18722 doc holiday Wed, 01 Oct 2008 15:30:00 +0000 http://www.nakedcapitalism.com/2008/10/credit-card-debt-next-big-hit-to-banks/#comment-18722 I really hate junk mail and get amazing amounts of credit card garbage (offers) everyday, so IMHO, if these crooks still have money to give to the post office to deliver this garbage -- then they do not have a credit problem, they have a predatory lending problem! I really hate junk mail and get amazing amounts of credit card garbage (offers) everyday, so IMHO, if these crooks still have money to give to the post office to deliver this garbage — then they do not have a credit problem, they have a predatory lending problem!

]]> By: gomad361 http://www.nakedcapitalism.com/2008/10/credit-card-debt-next-big-hit-to-banks.html#comment-18712 gomad361 Wed, 01 Oct 2008 15:03:00 +0000 http://www.nakedcapitalism.com/2008/10/credit-card-debt-next-big-hit-to-banks/#comment-18712 Visa Inc. is a public company (except in Europe which opted out of the March '08 IPO), the ex-"member banks" are still the major share holders but anyone can buy a share or two if they wish V : NYSE. Visa Inc. is a public company (except in Europe which opted out of the March ‘08 IPO), the ex-”member banks” are still the major share holders but anyone can buy a share or two if they wish V : NYSE.

]]> By: anon3 http://www.nakedcapitalism.com/2008/10/credit-card-debt-next-big-hit-to-banks.html#comment-18701 anon3 Wed, 01 Oct 2008 13:55:00 +0000 http://www.nakedcapitalism.com/2008/10/credit-card-debt-next-big-hit-to-banks/#comment-18701 <i>So credit card issuers may be showing lower losses than they otherwise might because other lenders are taking the hit...That may be about to change.</i><br/><br/>I don't get it Yves. How does this Marketwatch debunk your [apparently correct] theory that credit card losses are low because of lender protection? Are you saying that the cc's basically are senior to other creditors? And if so, what tells us this crisis will be so bad that it will reach them in this size? So credit card issuers may be showing lower losses than they otherwise might because other lenders are taking the hit…That may be about to change.

I don’t get it Yves. How does this Marketwatch debunk your [apparently correct] theory that credit card losses are low because of lender protection? Are you saying that the cc’s basically are senior to other creditors? And if so, what tells us this crisis will be so bad that it will reach them in this size?

]]> By: Anonymous http://www.nakedcapitalism.com/2008/10/credit-card-debt-next-big-hit-to-banks.html#comment-18690 Anonymous Wed, 01 Oct 2008 12:57:00 +0000 http://www.nakedcapitalism.com/2008/10/credit-card-debt-next-big-hit-to-banks/#comment-18690 Credit card limit downgrades have a big effect on credit scores! The big three factors are prior defaults, credit outstanding, and debt to limit ratios. Downgrade the limits and you downgrade the credit, substantially, triggering other companies to downgrade, etc. A simple limit cut can have a cascading effect on a swath of card holders without so much as a single missed payment! Credit card limit downgrades have a big effect on credit scores! The big three factors are prior defaults, credit outstanding, and debt to limit ratios. Downgrade the limits and you downgrade the credit, substantially, triggering other companies to downgrade, etc. A simple limit cut can have a cascading effect on a swath of card holders without so much as a single missed payment!

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