Unsettled Economy & The Bailout

[Peshkwe]

Re: Unsettled Economy & The Bailout

Even if the house votes for this round we may yet get to play 'BAILOUT' again.


Is the credit card debt the other shoe to drop?:

http://www.marketwatch.com/news/story/bad-credit-card-debt-could-next/story.aspx?guid={DE0C0B15-4760-491C-A0F4-D34CBD96F7B7}&dist=TNMostRead

http://tinyurl.com/4cdw5n (same link)

CHICAGO (MarketWatch) -- Credit-card debt is on the brink of imploding and will be the next storm to hit the fragile finance industry, an investment research firm predicted this week.
According to Innovest StrategicValue Advisors, banks will charge off $18.6 billion in delinquent credit-card accounts in the first quarter of 2009 and $96 billion in all of 2009, more than double the research firm's forecast for all of this year.

[matapule]

Re: Unsettled Economy & The Bailout

Even if the house votes for this round we may yet get to play 'BAILOUT' again.

You've got that right! Now that the BAILOUT train has arrived, everyone is going to want to climb aboard.

The credit card companies have acted irresponsibly. I know someone who has a $600 per month SS income. She has at least 5 credit cards and they keep sending her more. She has something like $30,000 charged on them. She uses her credit cards to purchase a couple of hundred dollars of clothes a month, dinners at Olive Garden, hair colored at the beauty salon, baubles from Lillian Vernon, etc. She uses credit cards to supplement her income to the tune of about $1000 per month. She has no intention or ability to ever pay them off. She gets offers for more credit cards on a monthly basis.

The average credit card debt in the US is $9,800 per family. The Bush Administration pushed through a law that prohibits forgiveness of credit card debt in a personal bankruptcy. So, that encourages credit card companies to act more irresponsibly. Let the credit card business go under!

[tutusue]

Re: Unsettled Economy & The Bailout

[...]
Is the credit card debt the other shoe to drop?:
[...]

My first reaction is...how can it not be? While lenders were dealing in subprime loans and banks were glutting mailboxes with credit card offers, consumers were taking on mortgages AND credit cards they could nary afford.

Maybe the benefit will be that we'll stop receiving all of those dang unsolicited credit card applications and identity thieves will have less opportunities to do their damage.

[Ron Whitfield]

Re: Unsettled Economy & The Bailout

Dang, just when I wanted to go a free-for-all spending spree without having to pay it off!
Maybe it's not too late..., gotta go!

[turtlegirl]

Re: Unsettled Economy & The Bailout

Here's something to think about, complements of Michael Moore. Link to full text here. And now the highlights -

"Here's How to Fix the Wall Street Mess ...from Michael Moore

The richest 400 Americans -- that's right, just four hundred people -- own MORE than the bottom 150 million Americans combined. 400 rich Americans have got more stashed away than half the entire country! Their combined net worth is $1.6 trillion. During the eight years of the Bush Administration, their wealth has increased by nearly $700 billion -- the same amount that they are now demanding we give to them for the "bailout." Why don't they just spend the money they made under Bush to bail themselves out? They'd still have nearly a trillion dollars left over to spread amongst themselves!
Of course, they are not going to do that -- at least not voluntarily. George W. Bush was handed a $127 billion surplus when Bill Clinton left office. Because that money was OUR money and not his, he did what the rich prefer to do -- spend it and never look back. Now we have a $9.5 trillion debt. Why on earth would we even think of giving these robber barons any more of our money?
I would like to propose my own bailout plan. My suggestions, listed below, are predicated on the singular and simple belief that the rich must pull themselves up by their own platinum bootstraps...

1. APPOINT A SPECIAL PROSECUTOR TO CRIMINALLY INDICT ANYONE ON WALL STREET WHO KNOWINGLY CONTRIBUTED TO THIS COLLAPSE.
2. THE RICH MUST PAY FOR THEIR OWN BAILOUT.
3. BAIL OUT THE PEOPLE LOSING THEIR HOMES, NOT THE PEOPLE WHO WILL BUILD AN EIGHTH HOME.
4. IF YOUR BANK OR COMPANY GETS ANY OF OUR MONEY IN A "BAILOUT," THEN WE OWN YOU.
5. ALL REGULATIONS MUST BE RESTORED. THE REAGAN REVOLUTION IS DEAD.
6. IF IT'S TOO BIG TO FAIL, THEN THAT MEANS IT'S TOO BIG TO EXIST.
7. NO EXECUTIVE SHOULD BE PAID MORE THAN 40 TIMES THEIR AVERAGE EMPLOYEE, AND NO EXECUTIVE SHOULD RECEIVE ANY KIND OF "PARACHUTE" OTHER THAN THE VERY GENEROUS SALARY HE OR SHE MADE WHILE WORKING FOR THE COMPANY.
8. STRENGTHEN THE FDIC AND MAKE IT A MODEL FOR PROTECTING NOT ONLY PEOPLE'S SAVINGS, BUT ALSO THEIR PENSIONS AND THEIR HOMES.
9. EVERYBODY NEEDS TO TAKE A DEEP BREATH, CALM DOWN, AND NOT LET FEAR RULE THE DAY.
10. CREATE A NATIONAL BANK, A "PEOPLE'S BANK."
"

More details at the above link.

Thanks, Michael Moore, your plan rocks!

[Frankie's Market]

Re: Unsettled Economy & The Bailout

FM, is it really necessary that I conceive and propose a better, workable alternative before I point out that the current system is fundamentally flawed? I don't pretend to have 'all the answers', never have, never will. Does that fact compromise the value of my observations in your mind?

Everything in this world is imperfect. Our economic system has its strengths and flaws. But then again, so does every governmental structure in this world.

What you're doing then is simply point out the obvious. That is, if economic growth is not sufficiently leveraged, then it can eventually collapse. That would be absolutely correct, no matter what country, economic system, or era we are talking about. But it's not exactly earthshaking news. And it does nothing to address the present situation and the pros and cons of the proposed govt. bailout.

[tutusue]

Re: Unsettled Economy & The Bailout

[...]
8. STRENGTHEN THE FDIC AND MAKE IT A MODEL FOR PROTECTING NOT ONLY PEOPLE'S SAVINGS, BUT ALSO THEIR PENSIONS AND THEIR HOMES.[...]

I have a bit of a problem with part of this one.

A few months ago I read about a manager at one of the McDonalds, making $35k a year, who 'qualified' for a $500k mortgage. That, to me, is insane. I don't feel this type of situation should be protected. As I see it, the lender was stupid for lending that much money in that situation and the buyer was just as stupid for agreeing to borrow more money than s/he could afford to pay back. Let both reap what they sow.

I would, however, like to see protection for those who lose the primary breadwinner to death or are encumbered by large, unexpected medical bills (cancer, for example).

Just my 2 grains of sand...

[salmoned]

Re: Unsettled Economy & The Bailout

GregLee, you're confusing who's who in your scenario. If Congress is the angry man, then failing to bail out a few institutions is definitely NOT 'setting the house on fire'. The ones who set the house on fire are the failing institutions (the wife, from whom he is divorced). Now, the man is miffed at his ex-wife for setting her house on fire, but he is incapable of putting out the fire (Congress can't restore confidence in the financial market by buying it out), so he intends to 'borrow' his employer's credit card and pay for rebuilding her house (so his kids continue to have a home). Do you get it now? The economy is not going to avert a down-turn if Congress bails these companies out because the problem is systemic and not just an ephemeral 'hiccup'.

[Vanguard]

Re: Unsettled Economy & The Bailout

The "Unsettled Economy" explained in 3 minutes

[tutusue]

Re: Unsettled Economy & The Bailout

The "Unsettled Economy" explained in 3 minutes

Very interesting! Now I better understand why I received so many letters of mortgage reassignment! And, as I found out, employees can drop the ball during these assignments by neglecting to record an assignment with the Hawaii Land Court.

My first assignment was Jan. 1996. The last assignment was in 2001. There were at least 4 assignments between the first and the last. I paid off my mortgage in March 2006. I have the payoff letter. During a 2007 transfer of my condo into a newly drawn up trust I received a letter from Land Court that there was a problem. I sent all the paperwork to the estate attorney who, in turn, sent it to a real estate attorney for advice. I am now staring down the barrel of a $5,000. legal fee to straighten out the MESS created during the first, Jan. 1996, transfer. That company screwed up...big time. How NONE of the future lenders who bought my loan didn't pick up on that, I'll never know. Neither my RE attorney nor Title Guaranty has ever encountered this problem before. We're paddling thru uncharted waters looking at an estimated one year to clear it up.

Fortunately I'm not interested in selling my condo because, right now, I can't. No buyer would be willing to wait the length of time it will take to straighten out this mess. So, here I have a mortgage free unit that's basically worthless for the time being because it shows it's encumbered by a mortgage with a company that's now...OUT OF BUSINESS. Well, DAYAM, I wonder why! And that means I also can't go back to that company to recoup legal fees. It's outta pocket for me.

This is just a heads up to those of you who have also been thru repeated assignments. It takes a title search with a cost of approx. $300. to find out if a discrepency shows up.

[turtlegirl]

Re: Unsettled Economy & The Bailout

I have a bit of a problem with part of this one.

A few months ago I read about a manager at one of the McDonalds, making $35k a year, who 'qualified' for a $500k mortgage. That, to me, is insane. I don't feel this type of situation should be protected. As I see it, the lender was stupid for lending that much money in that situation and the buyer was just as stupid for agreeing to borrow more money than s/he could afford to pay back. Let both reap what they sow.

I would, however, like to see protection for those who lose the primary breadwinner to death or are encumbered by large, unexpected medical bills (cancer, for example).

Just my 2 grains of sand...

Yes! Absolutely, I agree!

This has already been provided for under point # 1 in my last post -
1. APPOINT A SPECIAL PROSECUTOR TO CRIMINALLY INDICT ANYONE ON WALL STREET WHO KNOWINGLY CONTRIBUTED TO THIS COLLAPSE.

Both lenders and buyers have been stupid, but the predatory, criminal lenders who were laughing all the way to the bank for the past several years could, and should be prosecuted.

Wow, a ton of civil suits against these bad lenders would boost the economy simply by employing many more lawyers, prosecutors, judges, reporters, translators, videographers, whatever, etc.

[turtlegirl]

Re: Unsettled Economy & The Bailout

The "Unsettled Economy" explained in 3 minutes

That's a really great link!! Thanks!!!

[AlohaKine]

Re: Unsettled Economy & The Bailout

It's like watching theater. Like any one of us can sway the events. Way beyond my power.

[tutusue]

Re: Unsettled Economy & The Bailout

Yes! Absolutely, I agree!

This has already been provided for under point # 1 in my last post -
1. APPOINT A SPECIAL PROSECUTOR TO CRIMINALLY INDICT ANYONE ON WALL STREET WHO KNOWINGLY CONTRIBUTED TO THIS COLLAPSE.

Both lenders and buyers have been stupid, but the predatory, criminal lenders who were laughing all the way to the bank for the past several years could, and should be prosecuted.[...]

Point #1 would need to be expanded beyond Wall Street.

[Seeking Penance]

Re: Unsettled Economy & The Bailout

ej[3-29ufhn;sdc djgf-]384rhnsdknfospadf4dnf[p98-24

blah!!!

a bit frustrated with the entire hooplah

enough said

mahalo