Americans now have the highest credit-card debt in U.S. history

Don't say, you are completely ignorant of what QE is or how much cash the FED infused into the big banks.
Not surprised by your ignorance though.

 

exactly. And when they blow it up again, we'll reward them with more bailouts and QE. Sadly, many self proclaimed conservatives on this board view this as essential to our well being.

Wall Street bankers hate for you to be able to afford food, energy, cars, homes, education, etc, ..........

 

You are blaming Obama, while the GOP are in full control for quiet some time now. And now they even got the president.
So grow up.

 

That can be your little secret.

 

Why would banks get smart with risky loans when they know they will just get bailed out by insurance and the federal government?

The fix is to limit insurance companies on how much they can cover so that companies still have to be aware of the risks. Capitalism functions on risk and reward. If you take away 'risk then bad things happen.

 

I didn't say it was a surprise but at least you can discharge the credit card debt in bankruptcy if you are in over your head. Student loans not so much.

 

I'm so glad I tore up the credit cards and paid them off about 10 years ago. I keep one for business use that is paid off monthly. Best financial decision I ever made. My next goal is to pay off the last truck and quit getting new cars every 3-5 years.

 

Like I said, and you didn't bother to read it (preferring instead only to carp at me), this is NOT a "PRESIDENT" thing! This seizure of the nation's economy staged by the Federal Reserve System began during Republican Bush (satisfied?), TEN YEARS ago, this month! Then it continued for the eight years of Obama's regime, but (as I said already) all Obama did was roll over and be the Fed's 'house-boy' n****r, obediently leaving everything about the economy totally up the Fed! He was merely detailed with running the Democrat Welfare Circus -- keeping the American 'cattle' from spooking and smashing down the 'corral'.

Now comes Trump. Do you understand that neither Trump, nor Idiot Obama before him, nor Idiot Bush before him, has any control or real power over the Fed, except for the toothless, ceremonial exercise of 'appointing' the next Fed Chairman... which, frankly, doesn't mean Jack-sh*t in the greater scheme of things.

Look at how much difference there has been between the former Fed Chairman, Ben "Helicopter" Bernanke, and the present chair-holder, Janet Yellen.... Bernanke had a beard... and Yellen does not. That's it! That's the ENTIRE difference between them. Trump can't change that, and I'm not completely certain that he would, if he could.... Remember, after being put into existence by liberal Democrats over 100 years ago, the Fed has grown enormously powerful. FAR more powerful than any one president.

 

You had to sign one the dotted line before you borrowed buddy.

 

Did you or did you blame Obama in the OP when the GOP has been in full control for years?

 

How much did the Fed infuse into big banks and just how did they do that. You have no answer, of course.

 

What do you propose Trump should do to lower the level of credit card debt Americans are carrying?

 

The lesson is that it's better to have one credit card with a high limit than five with lower limits. That way you can carry the same amount of debt but it will cost you less on monthly payments. For instance, instead of paying $100 on five cards for a total of $500 a month you can pay $300 a month on just one card and gain a $200 discretionary fund.

 

The system is rigged. Im not saying I'm some victim here. I'm really surprised how few people know anything about the federal reserve and the banking industry.

 

Uh,...........$80 billion per month for 4 years.
Do you live in a cave or something?

The FED took failed assets off their books and replaced them with cash. The are still on the books of the fed.

Now, try saying something intelligent

 

Then it costs you more not less.
It takes you longer to pay and your servicing costs will be higher. You will be closer to retirement with less capital to your name by your method.

Extending your payments is good for the bank, bad for you

 

Trump gets credit for today's good economy. Obama gets the blame for this. Gotta love conservative logic.

 

It will take care of itself. Servicing costs grow exponentially until debt can no longer be serviced and new debt cannot be obtained.
The economy goes into recession.
Bad debt gets written down and the companies that foolishly extended credit to deadbeats go bust, just as it should be.

 

They get real smart. They make riskier and riskier loans, then derivatize them, so they can all buy and sell an unlimited number of swaps on the same underlying asset, in quantities so large that there is no counterparty on earth that could even dream of paying out the insurance payments should a small fraction of them go belly up and margin calls start to spread throughout the system.

They get bailed out again, and in the process make fortunes before and after the collapse.

When you are a favored wall street bank you get to profit on the boom and are protected from loss on the bust. Heads they win, tails they win.

 

Dang I thought the trend was going down do to debit cards...well I guess it's just me, I got rid of all my credit cards in my 30s ...


.

 

How long are you going to play this game of not having a clue what quantitive easing was during the Obama years?


.

 

*SMFH*


.

 

Fiat Currency (paper backed by nothing but a promise to pay) does not have a good historical track record. In fact it has a 100% failure rate

This time will be no different. They have been tying to mess with the invisible hand and the hand is getting ready to lash out.

The last 3 world economic empires (Dutch, Spanish, British) went into major decline roughly 20-25 years after going of Gold. We went off in 73.
The Dow peaked (in constant dollars) in Jan/Feb 2000 at 12,000. We beat the average by a couple of years. Since then it has been a rough ride.

This latest run up is the final last gasp. The next downturn is going to be Global and rough. When the dust settles the US dollar will no longer be the sole world reserve currency and we may well have defaulted on our debt.

 

No they'd rather blame that on Bush still. It's easier for them.

 

That just happens to be a lie, see FED rulings on CARD act.


WARNING: Gratuitous violent posting of previous stuff in…

2004 Democratic Platform:

"Average family debt is higher than ever. And as they lose the struggle to make ends meet, one out of every seven middle class families may be bankrupt by the end of the decade...over time, fiscal discipline saves families thousands of dollars on their mortgages and credit cards.”

“You have probably caught that Visa credit card commercial in which a wily wife hides her many shopping sprees under the bed and up in the attic, all out of sight from her clueless husband.
The punch line is that she could have won all that stuff she rung up on the plastic. But the reality behind such behavior is hardly a laughing matter.” (Rene a. Guzman, San Antonio Express-News Jan. 12, 2005 12:00 AM)

Neither Feeney or Kosmas responded to this:

"No creditor shall issue debt to any household which could exceed a 36% debt to income ratio, without the written knowledge and consent of both spouses or domestic partners in the household and each and every creditor the household already owes."

"Your debt-to-income ratio
36% or less: This is a healthy debt load to carry for most people.
37%-42%: Not bad, but start paring debt now before you get in real trouble.
43%-49%: Financial difficulties are probably imminent unless you take immediate action.
50% or more: Get professional help to aggressively reduce debt.
Source: Gerri Detweiler, author of The Ultimate Credit Handbook"
http://www.usnews.com/usnews/biztech/tools/modebtratio.htm

“Amendment Allows Consumers Who Are 21 or Older to Rely on Accessible Income for Credit Card Applications

WASHINGTON, D.C. – Today, the Consumer Financial Protection Bureau (CFPB) updated existing regulations to make it easier for spouses or partners who do not work outside of the home to qualify for credit cards. Today’s amendment, first proposed by the Bureau in October 2012, allows credit card issuers to consider income that a stay-at-home applicant, who is 21 or older, shares with a spouse or partner when evaluating the applicant for a new account or increased credit limit.

“Stay-at-home spouses or partners who have access to resources that allow them to make payments on a credit card can now get their own cards,” said CFPB Director Richard Cordray. “Today’s final rule is an example of the Bureau’s commitment to working with consumers and financial institutions in order to ensure responsible access to credit for American families.”

The Credit Card Accountability Responsibility and Disclosure Act (CARD Act) became law in 2009. The CARD Act requires that card issuers evaluate a consumer’s ability to pay before opening a new credit card account or increasing a credit limit. Under current CARD Act regulations, a card issuer generally may only consider the individual card applicant’s independent income or assets.” http://www.consumerfinance.gov/news...ome-spouses-and-partners-to-get-credit-cards/

See the FED ruling:

“The Federal Reserve's rule told credit card companies that they no longer can consider household income when assessing the creditworthiness of an individual who applies for his or her own card. Under the rule, only an individual's own salary or other income -- rather than combined household income -- can be considered.”
Read more: http://www.creditcards.com/credit-c...cards-household-income-1282.php#ixzz3WiwAm9JK

See the reason to oppose it:

“Opposition from CARD Act authors
U.S. Reps. Carolyn Maloney, D-NY, and Louise Slaughter, D-NY, both among the principal authors of the CARD Act, said the rule "goes beyond the intent" of the law and "represents a serious risk for women in abusive domestic partnerships."

"Women trapped in abusive marriages may be unable to work due to a controlling spouse, a hallmark of relationships characterized by domestic violence," Maloney and Slaughter told the Federal Reserve in a letter as it was considering the rule. "The availability of an independent credit card may represent her best chance at establishing independence and a path out of a dangerous relationship."

After the rule was announced, Maloney and Slaughter said they would be studying its implementation and would report any problems to the new federal Consumer Financial Protection Bureau, which could write its own rules beginning in July.”
Read more: http://www.creditcards.com/credit-c...cards-household-income-1282.php#ixzz3Wivmh5r8

"WILLIS: A truck driver, Bernita saved up $14,000 to close on a six-bedroom house. Purchase price -- $180 grand. She thought she got a deal on her first loan, a two-year adjustable rate mortgage at 8.375 percent. Her monthly payments -- $1,200." http://transcripts.cnn.com/TRANSCRIPTS/0803/28/siu.01.html

http://www.politicalwrinkles.com/ne...rd-rules-limits-teen-cards-10.html#post115060

"BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM DivisIoN OF BANKING SUPERVISION AND REGULATION Date: September 30, 2005:"
"Another parameter that could be combined with LTV ratios to determine capital requirements might be a capacity measure such as a debt-to-income ratio." http://www.federalreserve.gov/BOARDDOCS/PRESS/BCREG/2005/20051006/Basel1Amemo.pdf

"The Charles Schwab Corporation ("Schwab,,)l appreciates the opportunity to comment on the Advance Notice of Proposed Rulemaking ("ANPR") issued by the Office of the Comptroller of the Currency, the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation and the Office of Thrift Supervision (together, the "Agencies") regarding proposed revisions to the Agencies' existing domestic risk-based capital rules...

...P. 14 Another parameter that could be combined with LTV ratios to determine capital requirements might be a capacity measure such as a debt-to-income (DTI) ratio. The Agencies seek comment on (1) the use of an assessment mechanism based on LTV ratios in combination with credit assessments, debt-to-income ratios, or other relevant measures of credit quality; (2) the impact of the use of credit scores on the availability of credit orprices for lower income borrowers, and (3) whether LTVs and other measures of credit worthiness should be updated annually or quarterly and how theseparameters might be updated to accurately reflect the changing risk of a mortgage loan as it matures and asproperty values and borrower's credit assessmentsfluctuate. While we do support the use of combining LTV and industry standard FICO type credit scores in a risk-weighted capital guideline, as noted above, we do not support the inclusion of a capacity measure such as debt-to-income ratio (DTI). Our concern regarding the inclusion of such a measure is two-fold: (1) DTI is a much more subjective measurement than LTV or FICO score, and is not consistently calculated and applied by all lenders. Different lenders will calculate both income and debts using various guidelines. Additionally, some lenders will base DTI calculations only on verified income, while others may rely on stated income. There is too much variability in how this measurement is calculated and applied for it to be a meaningful guide to risk-based capital guidelines. And, (2) statistics have shown that DTI is a much less robust predictor of probability of default, or loss given default, than FICO scores and LTVs.

We do not believe that the use of credit scores in the risk-based capital guidelines will have a negative impact on the availability or price of credit to lower income borrowers. While the cost of capital can generally affect loan availability and price, we do not believe that applicant income is necessarily correlated with credit score. Many applicants with lower incomes have acceptable credit scores, while many applicants with high incomes have unacceptable credit scores. Banks are motivated to grant loans to generate revenue and profit, and most banks have very progressive mortgage programs for lower-income and fIrst-time homebuyers. The Community Reinvestment Act provides additional motivation for banks to reach out to meet the credit needs of the low-to-moderate income borrowers in their assessment areas" (January 17,2006, http://files.ots.treas.gov/comments/3173270d-dbd0-4b64-b398-487753ad9f27.pdf )

"Fed to discuss max 50% debt-to-income ratio for borrowers, prohibition on 'stated-income' loans to subprime borrowers, and other new rules" (May 29th, 2007, 3:38 pm) http://mortgage.freedomblogging.com...ns-to-subprime-borrowers-and-other-new-rules/

Here we go again...