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Old 07-25-2011, 09:26 PM
 
Location: San Diego California
6,795 posts, read 7,267,618 times
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Quote:
Originally Posted by user_id View Post
The banks have no way of knowing what I "need", despite having more than $100k in available credit nobody has asked me to verify a single thing.

Credit is still very loose...
They know everything about you....



High interest rates don't cause inflation, its the other way around. Large spending cuts, or not raising the debt ceiling will just be highly deflationary.
Then why is the dollar falling.....
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Old 07-26-2011, 12:25 AM
 
13,811 posts, read 27,359,709 times
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Credit debt is decreasing rapidly as consumers pay it off, and delinquencies are way way down. I forgot actual numbers but they are significant according to Bloomberg Businessweek, I want to say $1 trillion less debt vs 2 years ago. Credit is becoming fast and loose again but people in general aren't falling for it, most likely because many feel rather insecure about their jobs and the economy. Probably why you see all these offers - banks are shotgunning them out hoping people bite. And probably why they are putting just necessities on their cards instead of lavish luxuries like the days of yore.
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Old 07-26-2011, 07:14 AM
 
Location: San Diego California
6,795 posts, read 7,267,618 times
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Quote:
Originally Posted by wheelsup View Post
Credit debt is decreasing rapidly as consumers pay it off, and delinquencies are way way down. I forgot actual numbers but they are significant according to Bloomberg Businessweek, I want to say $1 trillion less debt vs 2 years ago. Credit is becoming fast and loose again but people in general aren't falling for it, most likely because many feel rather insecure about their jobs and the economy. Probably why you see all these offers - banks are shotgunning them out hoping people bite. And probably why they are putting just necessities on their cards instead of lavish luxuries like the days of yore.
I am not sure where you are getting your statistics, but they seem to be outdated.
Consumer debt stopped decreasing several months ago, and now is in fact increasing.
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Old 07-26-2011, 08:14 AM
 
13,811 posts, read 27,359,709 times
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Quote:
Originally Posted by jimhcom View Post
I am not sure where you are getting your statistics, but they seem to be outdated.
Consumer debt stopped decreasing several months ago, and now is in fact increasing.
Americans digging out of their debt dilemmas - Business - US business - Bloomberg Businessweek - msnbc.com
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Old 07-26-2011, 10:00 AM
 
5,760 posts, read 11,514,325 times
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Maybe I have read too much Doom P0rn lately, but that read a bit (quite a bit) like polished corporate PR.

An awful lot of Glib Happy talk -- when you consider the reason the Consumer / CC debt reduced was in large part due to billions that had to charged off by the CC Companies due to massive defaults.

But, oh well, Happy Days are Here Again, right?
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Old 07-26-2011, 10:01 AM
 
Location: San Diego California
6,795 posts, read 7,267,618 times
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I can see where you would get the wrong impression from that article.
Here is a little more comprehensive look at the situation.
Putting Consumer Debt Into a Bigger Perpsective - DailyFinance
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Old 07-26-2011, 01:53 PM
 
Location: Conejo Valley, CA
12,460 posts, read 20,022,485 times
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Quote:
Originally Posted by jimhcom View Post
Then why is the dollar falling.....
Because the economy is weak...
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Old 07-26-2011, 02:48 PM
 
Location: San Diego California
6,795 posts, read 7,267,618 times
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Quote:
Originally Posted by user_id View Post
Because the economy is weak...
FOREX-Euro rallies on Greece deal, US debt impasse hurts dollar | Reuters

Franc Reaches Record Versus Dollar on Debt Ceiling; Yen Rallies - Businessweek

Dollar hits record on budget impasse - UPI.com

Dollar Drops to Record Versus Franc as U.S. Struggles With Debt Deadlock - Bloomberg

These people all disagree, they say it is the chance of default that is hurting the dollar.
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Old 07-26-2011, 03:04 PM
 
Location: Conejo Valley, CA
12,460 posts, read 20,022,485 times
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Quote:
Originally Posted by jimhcom View Post
These people all disagree, they say it is the chance of default that is hurting the dollar.
It would be perhaps useful if you actually looked at some data instead of searching the internet for headlines.

The US dollar index has been weakening for the past year:

http://www.bloomberg.com/apps/quote?ticker=DXY:IND

Yet, we are suppose to believe this is some how due to the debt ceiling nonsense? Also, the place you'd want to look in terms of whether investors are worried about default is bond yields, after all, we are talking about defaults on bonds.
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Old 07-26-2011, 03:53 PM
 
Location: Ohio
24,623 posts, read 19,085,133 times
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Quote:
Originally Posted by user_id View Post
The US dollar index has been weakening for the past year.
Why worry about it? Like I said 4 years ago, you will never see $1 = 1 Euro for as long as you live.

It's only a matter of time before OPEC either switches to the Euro, goes to a basket currency, or allows members to choose their own currencies, and that will drop the Dollar even further.

Quote:
Originally Posted by jimhcom View Post
I can see where you would get the wrong impression from that article.
Here is a little more comprehensive look at the situation.
I thought that guy did a good job breaking that down.
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