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"My Credit Score Is Terrible...I'm Surprised They'd Give Me So Much [Credit]"
"Even though [those borrowers] could be considered subprime, they're still creditworthy," is the deja-vu all over again message from the Financial Services Roundtable, who proudly crow, they are "starting to see an environment where issuers are feeling more comfortable to extend credit." How great is that? What could go wrong? One credit union exec notes, "lenders in general have really saturated the higher-credit-quality market, so it is only natural that as they look for growth opportunities, they expand downward," and sure enough, as one new borrower exclaimed, "my credit score is probably terrible," adding "I was surprised they'd give so much." Exceptional America is back...
Sure enough Americans are slamming themselves into deeper and deeper debt - at lower and lower levels of credit quality - to attempt to maintain their exuberant iPad-eating lifestyles. As WSJ reports, Credit-card lenders are courting riskier borrowers more aggressively than they have since the financial crisis in a bid to jolt revenue in a period of sluggish growth and tight regulation.
Banks and other lenders issued 3.7 million credit cards to so-called subprime borrowers during the first quarter, a 39% jump from a year earlier and the most since 2008, according to data provided exclusively to The Wall Street Journal.
...
About one-third of all credit cards issued in that period were to subprime customers, the biggest share in six years, according to Equifax.
"Lenders in general have really saturated the higher-credit-quality market, so it is only natural that as they look for growth opportunities, they expand downward," said Randy Hopper, vice president of consumer lending at Navy Federal Credit Union, an institution based in Vienna, Va., that is the largest credit union in the U.S.
With banks sufferening from a collapse in trading revenues (thanks to the Fed), they are desparate for any sources of revenue and subprime borrowers are especially attractive to banks because they tend to pay higher interest rates and are more profitable as long as they pay their bills (agains in a perfect virtuous circle as the subprimes are not benefitting from the Fed's reverse-robin-hood poilicies)...
The average rate for such customers was 21.1% in the first quarter, up from 20.2% a year earlier, according to research firm CardHub.com. In contrast, the highest-quality borrowers paid 12.9% on average in the first quarter, virtually unchanged from a year earlier.
Subprime borrowers are typically defined as those with FICO or Equifax Risk credit scores below 660 on scales that top out at 850. Such borrowers often have missed payments on debt, suffered foreclosures, filed for bankruptcy protection or have no credit history.
Even the borrowers themselves are stunned at banks willingness to blow money out the wazoo...
Stephanie Sannar said she and her husband, Toby, of Colorado Springs, Colo., sold their home for less than they owed on their mortgage in 2012. Mrs. Sannar, 42 years old, an emergency-room nurse, said her credit score fell to about 650 following this process since the mortgage was in her name.
Still, the couple has been receiving many credit-card offers in the mail, and Mrs. Sannar said she recently signed up for a Citigroup credit card with a credit limit of about $15,000.
"I was surprised they'd give so much," said Mr. Sannar. "The credit-card offers come every week."
...
Adam Wasdin, 31, of Raynham, Mass., said he has been behind on payments for about a year on four of his private student loans. He said he was surprised to see credit-card offers suddenly arrive in the mail from lenders including Bank of America and J.P. Morgan Chase over the last six months.
Mr. Wasdin, a distribution driver for a local newspaper in the area, said he hasn't signed up for any of the offers and is sticking with his debit card.
"It went from nothing to offers maybe once a month," he said. Mr. Wasdin is reluctant to check his credit score because he figures it is low given his missed payments.
"My credit score is probably terrible," he said.
And market participants will declare based on historical performance how this is sustainable...
Charge-offs, or losses from unpaid credit-card debt that banks have declared uncollectable, fell 13% to $27.7 billion in 2013 from a year earlier, according to data from the Federal Reserve compiled by CardHub.com. At the peak in 2009, charge-offs totaled $85.4 billion.
We are not sure how useful it is to use 2013 default rates to justify lending on a revolving basis in 2014? How did that work in 2007/8? Maybe.. just maybem, th ebanks just hit their limit...
It isn't clear how long banks will keep wooing subprime borrowers. The Fed's April survey of senior loan officers found that lenders anticipate growth in outstanding loans to their most creditworthy customers this year, but only "a smaller net fraction" of banks expect more growth in loans to nonprime borrowers.
Though we suspect not...
"You're starting to see an environment where issuers are feeling more comfortable to extend credit," said Jason Kratovil, vice president of government affairs for payments at the Washington-based Financial Services Roundtable, which represents financial-services institutions. "Even though [those borrowers] could be considered subprime, they're still creditworthy."
Onward and upward leverage... what could go wrong.
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Securitization of debt makes for tricky ownership claims. Have they not learned that? They don't care as they sell off to suckers like pension plans. Yield whores make it happen and who can blame them for clipping the sheep?
Like everything else these days, BULLISH!
Whew! All back to normal!
"Credit Score" if you're an ignorant, apathetic J6P.
"Slavery Rating Index" if you're a banker laughing at all the muppets asking for moar credit.
At 21% you only need 1 in 5 to pay at least 5 years to breakeven.
1 2 or 3 pay the min for 5 years = obscene profits
Interesting. My wife's credit score isn't bad, it's just over 700, so it's not "great" either. But she has no income (she homeschools our kids, which is a fulltime job but it doesn't pay). She was in our bank in April, making a deposit or something, and they talked her into signing up for a credit card. I was pissed, but when she got the card in the mail I noticed that the credit limit they gave her is 3x the limit on our joint card. And I'm definately not on the account, so I have no idea how they justified that kind of credit limit to someone without any source of income. It would be another story if I was a joint-applicant or something. Very surprised to see them playing this fast and free with credit again.
Between Chase and Citigroup, we've recently received almost $60K in new credit card limit. Of course, once the 3-month $1500 challenges are completed and the rewards of $200-400 per card are received, the cards sit unused for the rest of the year; until I cancel them before the annual renewal fee is charged. Rinse & Repeat...
""I was surprised they'd give so much," said Mr. Sannar. "The credit-card offers come every week."
Why?
You spend the money, the bank gets the cash flow.
You default, the loss is already cost-averaged across every remaining customer who actually pays their bills.
The payer/deadbeat model proves inaccurate ..... costs get percolated up to every citizen who actually still gets up in the morning and puts in a day's work to fund the EBT/bailout machine.
Why the surprise?!?
Rack up debt buying gold, default and declare bankruptcy...
So profitable
Exactly!
Go for the 125% LTV and buy gold.
Default
I agree with your suggestion but I would offer one correction. Declare bankruptcy ONLY if a judge smacks a gavel against you. If not, then just give them the middle finger and in a few years you'll be back in their good graces.
This I agree with.
Deadbeats are the one's who pay their bills in the credit card scheme. especially those who do not occur interest charges, by paying their bills.
That's me! I haven't paid a penny in interest. I just use them to get my credit limit high enough yo pay off my student loan. Then I'll be free after I declare BR!
Fuk 'em
Using unsecured credit to wash student loans away will not be allowed in bankruptcy court, unless you're planning to wait several years beforehand. Any out of the ordinary charges in the past two years will be investigated before being discharged.
I'm one of those 'deadbeats'.
We pay off the cards every month. The only reason I carry a credit card is to avoid carrrying around large sums of cash.
You're doing it wrong.
the loss is already cost-averaged across every remaining customer who actually pays their bills
occam's razor: The banks can issue whatever credit they want as the FED will sweep any and all toxit shit off the books every month. credit cards are like economic hypodermic needles especially when dispersed to those who will use them without caution or concern. This is the end game and they will pull out all the stops.
don't worry about your credit score, Dick says the ragheads are going to blow up continental USA and you should just sacrifice all your virgins (i mean children) to him and his MIC Oligarchs....you know to save the children.
Securitization doesn't make for such a tricky ownership claim with credit card debt. Or at least no one has made the proper argument. It has been brought up in, IIRC, Idaho, and Citi ponied up with the pooling and servicing agreement, and the people that Citi was suing lost. If I was going to go after the claim, I would look at the fact that the P&S agreement says that, in the event of a default, the ownership of the CC receivables revert from the master trust back to Citi, but any recoveries from court go to the master trust. In essence, I would have two arguments both stemming from the idea that Citi is not the real party of interest: 1) Since Citi has title of the receivables in name only, but the real financial interests are to their trustee, Deutsch Bank and the investors who purchased Citi's CDOs backed by the receivables, Citi lacks standing and 2) Citi, not being the recipient of any possible recovery, is in essence making legal decisions in court for the master trust and investors, and is thus engaged in the unauthorized practice of law. I would be drawing heavily on this ruling from my state:
I would also slap FDCPA counter claims on Citi and whatever lawfirm they hired. If it looked like my legal argument was going to gain any traction, they'd either try to remove it to arbitration (if they haven't removed that clause from their cardholder agreements, some banks are,) or they'd want to settle quicker than shit. The FDCPA claim would classify them as a debt collector under the FDCPA, which they REALLY do not want.
When I had to deal with the issue with a TBTF (on a mortgage), they ponied up the PSA and it gave permission to the administrator to handle the kitchen sink. Our issue was with the timing of assignments into the pool, which seems to be the most common (established) method of attack... they brought in some out of state "expert" on securitization... fresh out of school no less. We ended up reaching an amicable agreement.
One thing that does not exist with CCs that does exist with mortgages that makes the securitization process different is a MERS like entity. MERS made things great for people dealing with foreclosure, depending on which state you live in. But robosigning did and most likely still does occur with CC debt. I'm going to possibly out myself and post some blog entries from the girl who signed the affidavit that was filed with the complaint against me:
So, what is "making goal?"
If you sift through her blog entries, you'll find a little more. At the point she was writing the blog entry, she was making something under $9/hr. Fucking slave driving bankers. The funny thing is, I don't think she really understood what she was doing to people, and I harbor no ill will towards her.
I harbor ill will to ignorance. Until we all do, it will be tolerated. It is plain on its face that she's doing something she isn't supposed to... the fact that someone tells her to do it (while paying her to do it) is of little consequence. Unless she actually has MR, then I'm not inclined to cut her any slack... and, if she does, then the entity hiring folks with MR to do this work needs to be put out of business and criminal sanctions against a shit ton of folks.
While many aspects of life are simply too complicated for most folks, this one isn't... she doesn't need to know the intricacies of securitization to know what she's doing is wrong.
Many lenders are close to 2006 levels of issuing Credit/Debt. It's scary.
"Q help me", even Mrs Kirk has the "Buying" bug. But she's 'Merican and she's always had it, in varying degree.
TBULLISH - It's a silent 'T'. Seriously, the 'T' is sooo silent and no-one ever hears it.
If banks don't lend then they don't survive. But :
Smart people ain't borrowing.
Dumb people have no money.
The money isn't made in lending. The money is made in getting bailed out.
Absolutely insane. My credit score is 830 and I received one solicitation saying I could qualify for up to 750K. That gave me such a laugh I decided to save it as a keepsake. Then, 2 weeks later, I got one for 900k. In 100 years I could not pay off this loan with my income. This is Banksters Gone Wild without the shirt lifts.
Miffed;-)
It's time to load up!!
After the inflation pay off that 900K loan with a fresh egg, and get 100K in change.
Say there was a parallel universe, where you took advantage (hey, they're giving it to you) of ALL that "credit" and turned it into phyzz shiney. Sure the bill each month would be large, but as the shiney rockets to the moon.... you could pay it off with one shiney. In a parallel universe, mind you.
Yeah, but the timing on that would be a bitch.
How soon is now?
And if you're wrong, and it takes 3 years for another financial crisis, you are going to have a real headache. I think that with Q1 GDP tanking dispite all of the manipulation of statistics and money supply plus Russia and China taking shots at the USD, you're probably right, the time is now, but have you ever been sued by a bank when you cannot afford an attorney? I have. It's not fun, even kicking some banker and attorney ass by myself. And the amount was nowhere near $750k. It was closer to $5k. If you want to do something like that, be prepared to pay for it with a lot of trepidation, stress and aggravation in the event that you're wrong.
Edit: I've had bullets fly over my head when I wasn't in the pits on a high power range. I had a bullet ricochet off of my vehicle's door while driving down the road. (Holy fuck, that impact was loud.) I've faced gangbangers who I really thought might want to kill me. I would rather face all of those situations all over again than the lawsuit they filed against me. If it happened again, I would be able to handle it much better today, but that first time is a real bitch.
Federal court rules of procedure give no leeway for a pro se litigant.
Heavy sanctions for deadline failures etc.Not for the faint hearted.
Anything over $175k will be heard in Fed Court to fuck you up.
Not if they sue you first. If they sue you first and you respond with counter claims and third party claims, and they try to remove to federal while you've filed permissible rather than mandatory claims against them, the federal court will not have subject matter jurisdiction over their claims. You can get it bounced right back to state court, or you can get their claims dismissed outright. But I've argued in Federal Pro Se too. There is more leniency when it comes to things like sanctions and whatnot. There is not a lot when it comes to the judge ruling in your favor.
I've never seen a pro se litigant win against an attorney... not saying it doesn't happen, but it's the exception and not the rule (and the attorney would never hear the end of it). State courts tend to go out of their way to argue on the pro se litigant's behalf (or so it seems), but all they're doing is building a record good enough to stiff them and ensure that it's unappealable. It's also really, really easy to sink a pro se litigant's battleship when they take the stand, getting them to answer all kinds of objectionable shit without objection... hell, sometimes they'll even agree to impossible conditions precedent before they can get the remedy they seek...
This is all part of the grinder... indigents and idiots have little chance.
Pro Se litigants win more than you might think, but far, far less often than they should. When it comes to debt related matters and getting sued, most people don't even respond to the complaint and get default judgments against them. A majority of the rest either go in and tell their sob story and get their asses handed to them (I've watched this, first hand) or stipulate to a judgment, which is the same a guilty plea in criminal court. There are several things that set a winning pro se litigant apart from everybody else, and one is that the winning ones learn the rules of civil procedure and the rules of evidence and try to follow them, take advantage of them and make the other side follow them. Right after I had gone through my shit, I hammered this point home to a high school dropout carpenter who went on to win two debt related cases against attorneys. The other thing that helps, once you have that down is to go in there with a bull in a china shop attitude. You're going to fight to the very end, and you're going to fight effectively. No surrender. The attorneys that banks send after people are not used to this. One attorney might have one or two or three thousand cases in a year, easily. Most people roll over and point to their anus with a sign that says "INSERT BANKER COCK HERE." When they get somebody who follows the rules, but not the unwritten etiquitte about being "reasonable" without pissing off the judge, they freak the fuck out. It helps that they've likely violating several laws in the process of suing you.
Yep. Most people who complain about the results of the legal system are folks who want the court to rule in their favor when they can't be bothered to even file a responsive pleading... Simply put, we have an adversarial legal system and if you fail to stand up and have your voice heard, then it won't be.
However, I wouldn't suggest the "bull in a china shop" attitude as a universal strategy. It should work most of the time because the pro se litigant is likely up against an idiot or apathetic attorney (yes, if you give a license to everyone, many will be idiots). Unfortunately, if you're up against a good lawyer and you choose to not follow the "gentlemanly practice" of law, then you're going to get skewered and served for dinner (presuming there are any remote facts in the lawyer's favor). You can lull a good attorney to sleep with motions that are good enough to be unsanctionable, but don't make the mistake of failing to follow the "unwritten etiquette." Never give a good attorney a reason to care about a case, you probably won't like the outcome.
Further, you had better be able to read your judge very, very well. Many are people who couldn't hack it in private practice (like academics) or are just trying to quietly cap off a solid career, however, sometimes, you'll run into a judge who really, really cares, is wickedly intelligent, and actually knows the legal answer to every single matter the litigants are discussing. If you run into the latter, then you're going to end up in jail for contempt. If you have the former (most of the time), then you'll probably fare well. Again, being a litigant is simply being a persuasive speaker. Rule #1, know your audience.
PS, being a good advocate is just as much about knowing which arguments not to make. The "bull in a china shop" routine tends to lose the advocate an incredible amount of credibility with the court by the time you need to cash in. You ever play poker? Bluffing all the time has its consequences.
By bull in a china shop I still mean knowing the legal basis and following procedure. Always be respectful to the judge. Never be overtly rude, but when it comes time for discovery, MAKE them prove their case 100%. When I won my case, I wasn't bluffing. I was taking a long view and was holding some things back until I had to disclose them. I had hard evidence that their records were unreliable.
When dealing with debt collection attorneys, yes, many of them are idiots. I got to watch one claim that the Rooker Feldman doctrine was a legitimate affirmative defense for an FDCPA case.
You may get some credit cards, but Banks won't lend you any serious money without collateral. So that's what you're risking. For most people collateral means their house. Even private student loans are now requiring collateral. Govt backed student loans do not.
The banks that shut down their CC securitization schemes have started opening them back up. I'm not an insider, so I can't say what they're planning, but if had to bet, I'd bet that this is the equivalent to some dumb kid standing there with his thumb plugging the leak in the dam.
The only winning move is not to play.
yep...why kick those sleeping dogs by playing some high risk credit game?
Stay honest and stay out of their game.
Downsize yourself and your expenditures other than the essentials.
Use your income resources to stack phyzz, food, water, guns, ammo, other supplies, etc. with your cash and don't get into any debt what-so-ever or over extend yourself.
Get out of the banking system as much as you possibly can.
Lay low and don't make yourself a tartget, but keep preparing.
And heed El Vaquero's advice too...I don't know who he is, but he sounds pretty fucking wise in these matters to me! ;-)
Funny how using my flux capacitors in series I was able to attain inter dimensional thought travel and found the same universe as well. Unfortunately at the time I was indoctrinated that stealing was wrong. I had not woken up to the fact I had been robbed blind already by these scum and they deserved no respect.
Miffed;-)
Respect is the ultimate currency, you know it, we know it, everyone knows it: Respect is the one thing that can not be printed.
Drop your wallet with $5k in it, and if I find it, you'll get it back with all of the money still in it. I would have to be very desperate to steal from somebody like that. But bankers? After what I went through with them, fuck'em. If you think that if you could time their demise well enough, taking out the biggest line of credit possible and purchasing everything useful you could think of would be a good thing to do. The only reason I wouldn't encourage such behavior is because if you time it wrong, you'll be meeting with their weasel-at-laws after you receive a summons. But if you understand the risks and you have a giant set of klanks, then go for it!
The fact that we are still here today wondering when it goes down shows my timing is bad/wrong. If you would of told me in 2010 that it wouldn't have imploded by 2014, I would of said you were full of crap.
Just think if we had really fixed things in 2008 where we would be right now in terms of economic growth.
But @ 900K, you can smell millionaire.
If you bank at a bank you're just asking to be raped. Seer clear. If it sounds too good to be true, it is.
Yep. And ditto for sovereign nations that are looking to store their gold bullion with the Federal Reserve.
A friend of mine took out a large student loan for college. Now she works at a grocery store like me.
Yea I know her. She and her Beau want to marry but they are so poor they cantaloupe.
Heh heh heh. Oldie but a goodie. Made my night.
LOL. Too true. Today the grocery cashier corrected me on a technical point of history, regarding Marie Antoinette and the French Revolution. I was both impressed and saddened.
..I was both impressed and saddened.
You are too cynical- the glass half full meme indicates that's a good thing.. it appears we are finally educating our min. wage workers with college degrees- isn't that every advanced, competitive society's goal??
Reminds me of this scene from swingers:
http://www.youtube.com/watch?v=nXo6UnxM_0c
A good slave is a debt slave- da banksters
These banks are the Devil incarnate...Why should they care what happens though?(they get bailed out)
Plus if some joker gets a card at 29.00% apr. and the bank pays ZIRP on it's obligations that a pretty good revenue stream for 5-6 months before the joker defaults.
The last industry of the world is consuming one another. The most highly educated amongst us seeking out the weakest to manipulate and EAT.
...a pretty good revenue stream for 5-6 months before the joker defaults.
that's all they care about because earnings have been sucking mightily lately. either the economy improves or it doesn't. either way they got their Q3 bonus.
Um, at some point it has to occur to people that there is only so much that can be repossessed from them. If they aren't buying homes or other major assets, what are they going to seize? It would cost considerably more to liquidate most people's "estates" than you would get from the sales. If credit is unlimited, then one could just keep borrowing ridiculous amounts, then default and say, "Go ahead, take it all..." Let the bankruptcy court take care of liquidating the cabinet full of Precious Moments figures, the Pottery Barn dinnerware and the Ikea futon...Have fun with that guys!
Meanwhile, if you plan right, you can have a HELL of a good time involving non-repossessable purchases...can't take back that weekend in Maui, or the ice-cold Coronas on the beach...
Or the coins lost in the lake.
With all of these boating accidents on z-hedge, I'm now an avid snorkler.
A lot of people are judgement proof. No assets that can be taken and so little income that wage garnishment will get little.
And they behave like it as well... (and are not dumb for doing so).
All the states have had to establish streamlined procedures for probate of small estates... and virtually every account, titled asset, etc. can be situated as to avoid probate, e.g. POD. Everything adjusts...
Ok credit cards have a side business, they sell your transactions and you can read this post to where a hospital now is going to have doctors rummaging through your Visa and Master Card records to see what you buy, look for payments to gyms, where you eat out and anything they can get. They pay for this data and Master Card and Axciom are on an aggressive path to get buyers as they make billions selling data. I wrote about the Master Card Persona program a while back as they were putting it together, so you don't pay, that's ok, they are going to make a lot of money selling that data to anyone buying.
http://ducknetweb.blogspot.com/2014/06/oh-crap-now-hospitals-are-now-buy...
I'm all over the hospital for being so stupid to think there's accuracy in a lot of that data and how it will be taken out of context, either accidentally or on purpose. Now numbers just came out US is dropping in quality of health care down to the bottom, but the data selling revenue couldn't be healthier so all these efforts are not about making you healthier, it's about selling data for big money. If you are lacking for entertainment Acxiom the biggest data broker opened up a tweet chat, after a couple answers they vanished:) I was nice and just stated facts so how much data "they buy" from Master Card and Visa, I don't know either, but had both MasterCard and Axciom going for a while today on the data selling epidemic so that's part of the reason some additional folks get credit, as they will sell your transactions all over the place to make some side money. Problem like everywhere else, the data is becoming more flawed all the time and they don't care as all they want to do is sell.
Acxiom @MedicalQuack We believe in ethical use of data & giving consumers transparency/choice – learn more about our stance: bit.ly/PMf0ka
Acxiom @MedicalQuack Hi Barbara, important to note this type of data from Acxiom is used for marketing outreach only & NOT for medical purposes
MedicalQuack @Acxiom I understand it's not medical, I'm a former EMR developer myself and former query monster as I called myself
MedicalQuack @Acxiom I took the same stance as most others on the web, not enough to just look up data on file for self bit.ly/11X2LAN
MedicalQuack @Acxiom I understand it's the hospital with their determination that there's value but too many flaws and people won't get that
MedicalQuack @Acxiom This video says it better than anything "Context is Everything"-there's the danger bit.ly/wEAK4R
MedicalQuack @Acxiom The data files on myself with your company and others is flawed, but people take that as the gospel for decision making
MedicalQuack @Acxiom It's problem everywhere-Google even told me my "real name" was machine compliant-algorithm suspended me bit.ly/TJT73y
MedicalQuack @Acxiom When my data is bought and sold and requeried so many times I have no clue to the orgins of the errors and can't fix it
MedicalQuack @Acxiom You're not the only data seller out there, banks, companies you name it and data bases get requeried and sold a lot
MedicalQuack @Acxiom When a consumer is "scored" based on data analytics-there's a new piece of data to sell about that consumer bit.ly/SWbIMq
MedicalQuack @Acxiom With doctors, look at the flawed data that is on the web about them, Healthgrades/Vitals-same thing bit.ly/1kaY2nb
I made a card with another's name as the authorized user. He or she runs around town using it and building my profile — the profile of a chicken-wing-eating purple-drink-drinking watermellon afficionado with a terrible case of the diabeetus.
Misinformation is power.
now that was fucking funny! almost spit up my "orange" drink. hahaha
"belly of the beast." that's a TRILLION a year in funding for healthcare...makes the "War on Terror" look like a piker.
"All to create a data plan"...and I imagine a very good one. Of course "we'll deal with the issues of the American People's health later!"
More than likely there is a "death plan" to go along with this type of...well, stealing basically. Usually it's a sleep plan. "Don't want it to be painful." Though maybe SEEN to be painful.
Maybe "visualized in your mind" as such.
There is nothing intrinsically wrong with the intern(m)e(n)t. But this is nothing more than the Holocaust writ large. I imagine "people still paying their cable bill" is found to me quite amusing.
Thank god for the twisted pair.
http://seekingalpha.com/symbol/FTR?s=ftr
hmmm. p/e of 55 with a dividend yield of 7%!
Dems block GOP bills to verify status, block tax credits to illegal immigrants
http://www.theblaze.com/blog/2014/06/26/dems-block-gop-bills-to-verify-s...
Why bother with credit cards just do an IPO for your social website and get Billions. BTW Tyler we just evaluated ZeroHedge at 25 Billion dollars, will that be check, cash or paper gold. (either way we will charge you NIRP when you put it in the bank).
Why do the people keep paying their maxed-out credit cards??
Stop paying already.
I tell people that almost every weekend. They say they must, they need the card to buy things !!!!!
Pretty soon they'll need them to buy food and gas with the way things are going.
Wow. I woke up and it's 2004 ..... Think I will go to Vegas and bet on the patriots and Red Sox parlay.
like this is any surprise. The universities are willing to loan out +$100,000 to people with no jobs, no life experience, and no credit history.
McDonalds Credit Card must have a credit score < 500 to apply
And then spend 4 to 8 years training their student-customers to NOT be able to think. Which makes them such wonderful employees! Well, actually it does make them wonderful employees... for jobs like flipping burgers.
One can get a master's degree at a state school for $10k in-state tuition.
That we as a society tell kids it's okay to pay $120,000 for a bachelor's is criminal.
Even I received one.
My name is Santos L Halper.
"but was it for MOAR!!! ho, ho, ho....
for everything else, there's master card
we create money, you have fun
you owe for weekend in Vegas, we have fun
you owe for staple stuffs, we have fun
yay!
America imports around five hundred billion dollars more from other countries every year than they export. This means we have a giant trade deficit, when we add this to our massive government deficit it is easy to see that we are living far beyond our means. Giving loans to people who will never repay the money is more proof they will do anything to keep people spending.
The Fed has been superbly entrepreneurial when it comes to Ponzi schemes or pseudo-economics hocus-pocus that has allowed the current situation to develop. The Fed must at some point begin to ponder a real exit strategy and end the massive and corrosive stimulus that the economy has come to expect. To make matters worse little has been done to address our structural problems and make America more competitive, this will thwart growth going forward. More on this subject in the article below.
http://brucewilds.blogspot.com/2014/06/exit-strategy-from-qe-remains-elu...
I just got a new card from the Fed and I had a zero credit score.
$500 million limit
Abu Al Fuquem
Iraq
A great deal of our economic system is about debt. It is important to remember not all debt is created equal. A mirage is a naturally occurring optical phenomenon in which light rays are bent to produce a displaced image of distant objects. Joining the idea of a mirage and contagion with the reality of collapsing debt forms an interesting subject.
It is important to remember all debts and obligations do not come due at the same time. Also, it must be noted when a bill is not paid or defaults it often starts a long and drawn out legal battle, this collection process that may extend years without harsh consequences. This my friends is the reality of modern life in America and much of the world. More on this subject in the article below.
http://brucewilds.blogspot.com/2014/05/debt-mirage-always-moving-into-di...
MAX out youer debt and buy precious metals.
Then default.
Banksters are stuck with non-performing loans. That will hit the Federal Reserve in the gut if enough people do it.
Muppet is as muppet does.
When you print money out of thin air, you can take chances. Seriously, what do they have to lose? They have nothing invested except the printing. Ponzi economics drives the system. In reality, they could have a zero percent payback, and just print some more.
People remain stupid I see. If banks are being dumb enough to extend you crazy amounts of credit... there's your bailout and exit strategy. I have a buddy who did this back before the implosion. Dual citizen, took out a whole pile of student loans, and acquired a nice stack of cards (apply all at once to get crazy levels of credit). Then you take those cards and pay the percentage to swipe them for cash. He took the cash and bought property overseas and now rents it out. Smart guy. That $100k investment is now worth around $2m with a stable monthly (tax-free) cash flow around $4k or so. Of course, he also renounced the US passport and walked away from those hilarious debts. Retired before 30 and living in Thailand now. Beats the hell out of slavery in the US.
People for whatever reason are still stupid sheep. If the system is setup in a way ripe for abuse with no legitimate recourse, you're an idiot if you don't abuse the fuck out of it.
>> That $100k investment is now worth around $2m
I don't know, I'm sure it's just me, but I find that 20X gain in less than 10 years on RE a bit hard to believe.
In Beijing? That's basically nothing to be honest. 10 years ago: 4000 RMB/sqm was high. Same place now, 80~100k RMB/sqm. $100k minus decoration costs for a place that's about 160sqm. You do the math. Location location location.
"People" eh? Are you a people and if so why haven't you done the same?
I did my own fair share and took my pound of flesh from them.
Perhaps the issue of credit cards to sub prime borrowers is the banks' philanthropic attempt at micro credit
What stops any subprime borrower rehypothecating their income by getting a string of credit cards which he suddenly drains and then disappears.
Al Gore:
http://en.wikipedia.org/wiki/Al_Gore
VS
Mark Twain
http://www.biography.com/people/mark-twain-9512564#huck-finn&awesm=~oInr...
neither one would qualify for a convential loan.ald
Subprime reloaded!
you can't print moar fiat without massive (debt/credit) in the system, banks cannot find enough takers of credit so interest rates on these CCards reach double digit as in one sent to my wife which was for 22% ..22% annual rates? while cash in savings at these very same banks earn 0.01%-this is not a financial system this is fubar.
I have great credit but have not worked for nearly 4 years. (tried to start a bottled water company-almost made it) I get offers weekly. I am thinking I up my credit limits on my existing cards, sign up for a few more and 'GO SHOPPING' Heck I got enough to buy the materials to obuild a house+++. Once I am done, I cut the cards and throw them in the trash..
Not much they can do, the credit cards are unsecured loans. Put my phone number under someone elses name to prevent the harrassing phone calls and I can laugh while watching my flat screen in my house I built at the expense of the banks..
Now if we could just get everyone to do this and withdraw their savings from the banks it woudl be the worlds biggest most fierce bank run the world has ever seen.
Imagine TRILLIONS in bad credit card debt, all after the media whores tout how great the economy is becuase of all the credit creation and consumer spending.. mmmmuuaahhhahahahaaha FAHK THEM
They can get a judgement against you and confiscate assets.
Better to be current as you simultaneously max out all credit available, then go 7. You would need to get assets other than primary home and vehicle into someone elses name. Retirement accounts can be trivky.
Go to a fuel station, and sell fuel to truckers at $0.80 cash on the dollar.
Presumably if you create the currency out of thin air. Every single £$€ etc back is a bonus!!!
650 is bad? LOL. I wasn't aware everyone had 700+.
I lost my job. I drive a Chevy.
I lost my house. I drive a Chevy.
apparently the sub-sub-prime credit market is in full swing.
Gotta reach for that yield.... haven't made enough off everyone else.... gotta give loans to the worst possible candidates.
This is 2007 all over again. It doesn't end pretty. Stay out of the market folks. This terd is coming down!
I've read this before...
They are not going to change the algo's to let scores rise too fast in the event growth returns. Ha ha.
So they relax credit standards to "fill up the card" for now.
I've got bad credit but I can get student loans. Can I buy a house now; please.
But illegal drug sales and dollar counterfeitng still seem to be the most lucrative to many. CNBC once did a documentary on its American Greed series about a guy in the southwest US who made high quality US currency with an inkjet printer. Passed over $100 million before the feds caught up with him.