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The credit card companies are following the same path as the sub prime lenders...take the profits while you can, because the defaults are coming fast and furious. The companies deserve it, and the people living beyond their means with them deserve what's coming. Now, who's going to bail them out? Right, you and me.
Credit card debt is what made America "rich", with middle class (and low socioeconomic class) living in much better and expensive homes and the wealthy collecting on the interest gained from that credit debt. However, the middle class were stretching their spending on buying more "expensive" lifestyles but it all comes with a price and that was dependent on how good the economy was and will be. With the economy going down the craphole, the credit debt becomes a great burden instead and the low and middle class are clamoring for "change" so that they can "keep" their upgraded lifestyles instead of the "previous" lifestyle with 1000 sq. feet homes, etc. etc. They seem to think that their upgraded lifestyle should be the baseline. Most people didn't live in 1000 sq feet homes like they use to anymore and they expect their new 2000 sq feet homes as the "minimum" lifestyle to have and believes everyone should pay to help them live in their upgraded lifestyle, and to make it more affordable for them they advocate a communist society aka social programs and bailouts...when in fact it is a parastic society as they are seeking people who they can steal from... the government loves a bigger voter support base and gives in (but politicians also like money and power and won't offend large corporations)... so they use social program that PAYS large corporations for social services... they take money from someone... often you, but there are people who think they should take money from someone else instead of themselves (these are the parasites)...
On the flip side, responsible people know how to take advantage of their credit and use it to lessen debt and make profits. I have a credit card with 0% APR for life, but I use it wisely and loaded with debt that is at higher interest. This is me taking advantage of credit albeit, the companies are hoping I overspend like most people and be irresponsible to make them a large profit. It seems to work on some people but not me.
In the end, credit has brought a lot of wealth to a lot of people and has been invaluable to people like me to lessen debt. However, credit is linked directly to the economy and people who are irresponsible with credit will be hit hardest. Should we deprive most people of credit? That would be bad for corporations as they lose money. It would be bad for responsible people as they can't use it to lessen debt or create wealth. It would be bad for the irresponsible person as they can't upgrade their lifestyles and call it "baseline"...
The credit card companies are following the same path as the sub prime lenders...take the profits while you can, because the defaults are coming fast and furious. The companies deserve it, and the people living beyond their means with them deserve what's coming. Now, who's going to bail them out? Right, you and me.
I feel it's more the person than the credit card, to many people don't know how to use them, I have some friend who have linked cards to their mortgage (credit line) one of them owes $100.000 on theirs, nothing bought for the home, just food, gas and wasted spending. The long term affects are staggering, it's the next tragity to hit after the housing fall. What a mess.
Maybe the government will bail them out
I did watch the whole show, very informative! I knew most of what was brought up, but didn't know that they federal agency that oversees credit cards squeezed out the state and has been less than, shall we say - eager, to protect consumers.
not that I support her or anything but the only candidate that addressed this once was Clinton. Clinton said she would forgive every loan in the country. I think that shows how bad things are becoming. The other candidates blasted her for it. It is the same thing Japan did some years ago because they were in similar situation as us.
she will forgive every loan in the country? Gee, let's all run out and get loans! I can get that Hybrid car after all and maybe some solar panels. LoL.
I am sure there would have to be some sort of guidelines on this but the alternatives could be disastrous if something isn't done. As mentioned before, our economy is driven by consumer spending (it makes up 72% of our economy). What happens when people stop spending? You guessed, recessions or something worse.
yeah but think about the implications for the economy. The U.S. economy is 72% based on consumer spending. What happens when consumers can no longer consume @ past levels?
Economy won't be overly impacted by this because of the internationalization of business. The falling $ and the rapid rate of international growth will negate a lot of the anticipated impact credit problems would have on economic growth.
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