Don't buy anything for X-mas....watch the system die.

[cool hand]

:toast

[ChumpDumper]

You're buying things for Christmas.

:toast

[IceColdBrewski]

Admit it cool hand. You've already placed the order for your snuggie

2xZp-GLMMJ0

[boutons_]

With credit cards maxed out,

with non-maxed credit cards having severely reduced limits,

lost jobs,

etc

Christmas shopping season, starting Friday morning will very probably just another disaster, causing lots of companies to die.

It's fucking scary to try to keep up with all the bad news, that nobody says won't go one for many more months, or more.

Apparently, an inevitable and not distant disaster will hit card issuers as millions of maxed-out card holders go late or even go bankrupt.

[boutons_]

http://graphics8.nytimes.com/images/blogs_v3/executivesuite/executivesuite_print.png (http://executivesuite.blogs.nytimes.com/)

http://www.nytimes.com/adx/bin/adx_remote.html?type=noscript&page=blog.nytimes.com/executivesuite&posall=TopAd,Position1,Position1B,Top5,SponLink,Sp onLink2,SFMiddle,Box1,Box3,Bottom3,Right5A,Right6A ,Right7A,Right8A,Middle1C,Bottom7,Bottom8,Bottom9, Inv1,Inv2,Inv3,tacoda,SOS,Middle4,ADX_CLIENTSIDE&pos=Position1B&query=qstring&keywords=? (http://www.nytimes.com/adx/bin/adx_click.html?type=cookie&pos=Position1B)
November 25, 2008, 9:00 am

The Worst Is Yet To Come: Anonymous Banker Weighs In On The Coming Credit Card Debacle


By Joe Nocera (http://executivesuite.blogs.nytimes.com/author/joe-nocera/) A few weeks ago, I published an e-mail message (http://executivesuite.blogs.nytimes.com/?s=kimono&search.x=0&search.y=0&search=Search)sent to me from an executive who works in the banking industry — and had become disgusted by what he sees all around him. This weekend, that same banker sent me another e-mail message, which he has also agree to let me publish. It’s another wake-up call. Too bad nobody is listening.

Today, we are bailing out the banks because of their greedy and deceptive lending practices in the mortgage industry. But this is just the tip of the iceberg. More is coming, I’m sorry to say. Layoffs are being announced nationwide in the tens of thousands. As people begin to lose their jobs, they will not be able to pay their credit card bills either. And the banks will be back for more handouts.

I received a catalog today from Casual Living and in big bold print on the front page, it said “BUY NOW, PAY NOTHING”. Then in significantly smaller print underneath, it said, (until April). That mantra has been sung throughout the credit markets over the last 10 years. The banks waive a carrot in front of the consumer and reel them in and encourage them to go deeper and deeper into debt. They do this by prescreening customers through credit reporting agencies, mailing offers to apply, and to transfer balances at teaser rates or zero percent financing. They base it on credit score and not on capacity to repay. A good credit score does not equate to the ability to repay debt.

Over my career, I have seen thousands of consumers that have credit card lines in excess of their annual salaries. Some are sinking under their burden. Some have been fiscally responsible and have minimal amounts outstanding. My 21-year-old daughter, who’s in college, gets pre-approved offers all the time. She has no ability to repay debt, yet the offers flow in just the same. We all know how these lines are accumulated. The banks, in their infinite stupidity, keep upping credit lines because the customer pays the minimum payments on time. My daughter’s credit line started at $1,000 and has been increased over the last two years to $4,400. She has no increased earnings to support this. But the banks do it without asking. And without being asked. The banks reel in the consumer, charge interest rates higher than those charged by the mob, increase lines without the consumer asking and without their consent, and lure them into overextending. And we can count on the banks to act surprised when they aren’t paid back. Shame on them.

As a banker, let me describe what we do wrong when we accept and review an application for a credit card. First, we don’t verify income. The first ‘C’ of credit: Capacity to repay, is completely ignored by the banks, just as it was in when they approved subprime mortgages. Then we ask for “household income” — as if other parties in the household could be held responsible for that debt. They cannot. And since we don’t ask for any proof of income, the customer can throw out any number they think will work for them. Then we ask if they rent or own and how much they pay. If their name is not on the mortgage, they can state zero. If they pay $1,000 in rent, they can say $500. (Years ago we asked for a copy of the lease to verify this number.) And finally, we don’t ask how much of a credit line the consumer is looking for. The banker can’t even put that amount into the system. There isn’t any place on the application for that information. We simply put unverified information into a mindless computer and the computer gets the person’s credit score and grants them the biggest line that score and income (ha!) qualifies for.

I recently had a client apply for a credit card. She is a homemaker, with no personal income. The house she lives in is in her husband’s name. She would have asked for a $3,000 credit line, just to pay miscellaneous expenses and to establish some credit on her own. So the computer is told that her household income is $150,000; her mortgage/rent payment is zero. The fact is that her husband’s mortgage payment is $7,000 a month (which he got with a no income verification loan). She had a good credit score, but limited credit since she has only lived in this country for the last three years. The system gave her an approval for a $26,000 line of credit!

This has got to stop. People are going to be learning hard lessons over the next years. It would help, though, if the banks could change their behavior now, before things get any worse. Tomorrow is already too late.

In 2003, Congress passed the Fair and Accurate Credit Transactions Act of 2003. This law was implemented through regulations issued by the Federal Trade Commission in consultation with the federal banking and credit union agencies. It requires all credit card and insurance solicitations to include a disclosure for “prescreened offers.” We are all familiar with them. They are the dozens of credit card offers that are sent, unsolicited, to consumers, usually by mail. The law allows the consumer to opt out of receiving prescreened offers by calling an 800-number.

I think Congress did this backwards. Perhaps it could amend the law. The regulation should have required the consumer to opt in, if they so desire, instead of opting out. That would mean that no one would get an unsolicited credit card offer. If a consumer needs a credit card he or she could be given an option to call an 800-number to opt in. Or the consumer could go to their local bank and apply for a credit card in person. Or the consumer could go online and apply for a credit card. The consumer can also view all the best credit cards, nationally, at bankrate.com. Bankrate.com is an invaluable tool for consumers.

Some other benefits:

(1) It would halt the message being sent that credit is free and perhaps limit irresponsible accumulation of credit lines.

(2) It would force the banks to become more competitive in their rates. The consumer is going to need a break and they will need it soon. And credit card rates, which are quite often above 22 percent, is piracy.

(3) Eliminating mass mailings would save a lot of trees.

I’ve been reviewing many of the banks annual reports over the last month and there is no question that the default rates are on the rise.

If Congress doesn’t act today, the bankers will have their hats in their hand before we know it, and doing another a tap dance before the Senate Banking Committee, and asking to be bailed out once again with our tax dollars. Sad, but true.


http://wt.o.nytimes.com/dcsym57yw10000s1s8g0boozt_9t1x/njs.gif?dcsuri=/nojavascript&WT.js=No&WT.tv=1.0.7

[Wild Cobra]

I'm sorry guys. I'm not participating an any recession. I'm buying anyway.

[J.T.]

And we can count on the banks to act surprised when they aren’t paid back. Shame on them.

I laugh at this just because of the 13 calls per day I got from debt collectors from February until June when I changed my phone number. Curiously I began getting calls three days later without disclosing my new number to the CC company. Now both accounts are charged off and for a while I was receiving messages from a foolish Middle Eastern faggot that worked for a collection agency who was trying way too hard to sound threatening without actually breaking FDCPA law. Then I started getting calls from a different Middle Eastern man working for the same collector who was trying way to hard to make it sound like my massive amount of debt was no problem, and how we can easily work things out if I'd just give them a call when I had the time. Did they seriously think the good cop bad cop routine actually works anymore? Maybe in the movies...

Also, every week the guy would say "I'll have the file on my desk until Friday, then it moves up to the next step in the process and that's only going to be bad for you"...only that went on for two months. Newsflash, threats aren't effective if you don't follow through. I changed my phone number again and have enjoyed about a month of silence during the day from the hours of 8am to 9pm.

I don't miss that shit one fucking bit.

I'm not buying a god damn thing for Christmas, and I've told my family not to get me anything since I know they're probably in as bad a situation as I am. If I get anything other than a $50 HEB gift card from my family and a ten strip of LSD from my best friend, I'll be shocked.

[fyatuk]

The last 5 or 6 years, I've only spent about $50 on Christmas, so I don't see the point in cutting back. I'd rather not contribute to more businesses going under, etc. Whatever.

[tonylongoriafan]

i'm not a communist...i will be spending way too much money on xmas

[cool hand]

Admit it cool hand. You've already placed the order for your snuggie

2xZp-GLMMJ0



I saw this a couple of days ago and thought, this has to be the worst product since the flobee. I also thought Jedi-Knight and JAWAS and Friar Tuck.

[IceColdBrewski]

I saw this a couple of days ago and thought, this has to be the worst product since the flobee. I also thought OB1-KENOBEE.

How bout a Sham Wow!...?

[ChumpDumper]

How bout a Sham Wow!...?Synthetic chamois are great -- it's just that the fact they have already been available for well over twenty years that makes me laugh.

[Das Texan]

If I get anything other than a $50 HEB gift card from my family and a ten strip of LSD from my best friend, I'll be shocked.


I thought you quit drugs after little post a while back.


Good job.

[J.T.]

I thought you quit drugs after little post a while back.


Good job.

I quit doing ones that could kill me or were physically addicting or cost a lot of money. But hey, you're not a doctor, you just play one on the Internet, right?

And the post you're talking about is the one when the entire board got on my case for not leaving a party that people were doing drugs at (even though I wasn't doing any). So you all can take your self-righteous Dr. Phil bullshit and shove it up your asses. Coming up being coke free for a year, put that in your pipe and smoke it.

[Das Texan]

I quit doing ones that could kill me or were physically addicting or cost a lot of money. But hey, you're not a doctor, you just play one on the Internet, right?

And the post you're talking about is the one when the entire board got on my case for not leaving a party that people were doing drugs at (even though I wasn't doing any). So you all can take your self-righteous Dr. Phil bullshit and shove it up your asses. Coming up being coke free for a year, put that in your pipe and smoke it.



ya cause lsd is perfectly harmless.

[Wild Cobra]

LSD is not harmless. It can have profound permanent effects on people. Just look at me…

Joking in that regard, but I can see the shit flying as I type this.

I have a sorted past. I used a few drugs, but I stayed away from the ones I knew could be harmful. Didn’t like Coke, but often used Marijuana, Peyote, and LSD. I will never do LSD again. I never had a bad experience, but I have friends who did. I love LSD, but it’s like that crazy bitch who will stab you when you least expect it.

Peyote… Marijuana…. Bring it on. God’s gifts to us all…

[Jelly]

I suppose that's one good thing about this situation. Maybe we can get away from the crass commercialism and materialism that has overtaken Christmas and pretty much our whole society.

[Anti.Hero]

Synthetic chamois are great -- it's just that the fact they have already been available for well over twenty years that makes me laugh.

I love how he says avoid all the copycats! or some shit like that.

What a joke.

[balli]

I went through a nightmare experience with too much LSD... I'd say it fucked me up for quite some time and as a result I'm naturally, just not too inclined towards hallucinogens anymore. Having said that, I don't think it's all that dangerous a drug. My bad experience resulted from taking too much, while psychologically volatile and in a terrible setting. It was my irresponsibility that was dangerous, not the drug. I've yet to see anybody responsibly use gurp and come out worse for it.

[Nbadan]

Oh JOY! ...........sing along....

Toys For The World

Toys for the world are made by kids
And not by elves at all!
We work them night and day
For very little pay.
And tiny little hands
Make all our fav'rite brands
That fill up the shelves in every shopping mall.

Toys for the world that Santa brings
So our own kids can play
What's underneath your tree
Is our economy.
The little girls and boys
Who make our children's toys
Are not getting squat from us on Christmas Day!
They're not getting squat from us on Christmas Day!

[boutons_]

Looks like Americans are X-ing X-mas.
================

Americans Have Lost Their Appetite for Spending

"AS the holiday shopping season begins, American consumers say they are less interested in consuming than at any other time in the past four decades."



http://www.nytimes.com/2008/11/29/business/29charts.html?_r=1&pagewanted=print

[Ya Vez]

at least guns sales are up.... lol

[mookie2001]

things are getting bad, im so tired from working like alan jackson every weekend, the only sleep i can get is at the spurs game
not to mention they repossessed my yamaha

[mookie2001]

beer is so expensive thispego cant even DWI anymore