<Canadian Gas - Decline Sets in. The Oil Drum The Finance Round-Up: October 17th 2007>

79 comments on The Finance Round-Up: October 12th 2007

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DelusionaL on October 13, 2007 - 7:34am Permalink | Subthread | Parent | Comments top

What is the reasoning behind the banks continuing to lend on unsecured credit cards when it is obvious they will never collect?

That was my question as well and it struck me that the answer might be the most important answer you will ever need in regards as to how to protect yourself and prepare for the short term and long term future.

My take.
The FED is dead. They are caught in a catch 22. Lower interest rates and stop foreign purchases of our debt or raise rates and kill our debt based economy.

They are doing what is rational only to a junkie. This is desperation. They are so out of control that it isn't funny.
I was wondering how you would get the money into the hands of people who will actually spend it and still "account" for it. The fed cannot print money. All debt must go through an accounting method. It is not created and given away with out a paper trail. So how do you get people who cannot borrow any more on real estate to take on even more debt?

We have the answer. Funny I remember a note in our latest credit card bill. Our limit was raised to $11,000.00.

This will be the last debt tango.

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musashi on October 13, 2007 - 3:20pm Permalink | Subthread | Parent | Comments top

Looks like we came to similar conclusions, even if mine goes a few steps further, but it isn't something to discuss in the current political environment.
If the Fed were dead we wouldn't have that much of a problem, the problem is that the Fed has the power to hide the crimes of their people while burying us further. No bank individually would follow this suicidal course of action.

It just seems upsetting that so many useless freeloaders get free money while we get taxed. The only consolation is that they are so stupid they spend it on crack and useless junk.

Maybe the way to play it is if the Hillabeast gets elected we just use our credit lines to the max, buy a wagon load of gold, bury it, flip them the finger, claim to be oppressed and get bailed out.

Can't beat them, join them, sort of thing.

Up to that point we remain debt free in case Ron Paul wins and the rule of law prevails.
It would be priceless to watch the banksters jumping out of windows.

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Dragonfly41 on October 14, 2007 - 2:56am Permalink | Subthread | Parent | Comments top

Ya...my credit card company raised my limit to $13,000 recently. Now, how stupid would I have to be to put that much on a card that charges about %17 interest.

Holy smokes...debt servitude indeed.

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Relayer on October 14, 2007 - 11:19am Permalink | Subthread | Parent | Comments top

Miss or be late with a payment or two and see what happens to that interest rate. 30%+ comes sooner than you might think, hehe.

This is the game. They seem to be betting that many will have that problem and then whammo, they have you forevor. Once they crank that interest up that high it becomes nearly impossible to pay the sucker off.

Voila, perpetual income.

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ggg71 on October 14, 2007 - 9:01pm Permalink | Subthread | Parent | Comments top

Unethical behavior runs rampant on Wall Street. How else can you explain companies that pay outrageous golden parachutes, grant huge numbers of options, fund share buybacks instead of dividends, and generally stick it to the ordinary shareholder?

Companies are mortgaging their future left and right while they continue with huge payouts to crooked boards and shareholders. Why?

Because the average guy is invested in 3 or 4 mutual funds, has no idea what specific companies he's invested in, doesn't vote on shareholder issues (usually the mutual funds retain that right or ask you to vote for their recommendations), and really has no interest. He's seen 10 minutes of Suzy Orman, picks a few selections, and prays.

Companies know this. Banks know this. Everything is focused to boosting revenue this quarter. Sell a few more options. Get another huge bonus. And when things go bad, they just ask the feds for a bailout from taxes paid by the same guy who just lost his 401k.

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79 comments on The Finance Round-Up: October 12th 2007

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