The Next Financial Mess!!

Dealing in Debt!!

Everyone, almost, is in a complete Rage at what is happening, and has been allowed to happen by not only soft regulation but the ease on any regulation in the Banking Industry, Morgage Industry, Wall Street, and in a Rage you should be.

But want a better picture of the who got us here any why, leave your computer and go to the nearest mirror and take a Good Hard Long Look at the reflection coming back, Yep Folks, it’s most of you, and the rest of the shit hasn’t yet hit the fan, but it’s quickly coming!

Remember the clowns you hire to represent you in Washington, and local and state, are your clowns, you pay them.

Have been wondering why this hasn’t been touched on in the Financial Crisis and Greed that’s bringing down the House of Cards known as Wall Street!

ABC ‘Nightline’ finally brings it out in the light of day

Are Credit Card Companies Dealing in Debt? MBNA Insiders Question Former Employers’ Practices.

But they only cover one side of this coin, the side us individuals only want to see, the other side.

You hear about the mortgage meltdown all the time, but as more and more Americans become saddled with huge credit card debt they cannot pay, the next crisis point may come in plastic. Last night, we brought you exclusive interviews with former credit card company employees trained to lead customers to take on more debt — even if they couldn’t handle it. Tonight, ABC News correspondent Vicki Mabrey takes a close look at what consumers need to do to protect themselves from a credit card crisis.

You can find the same video at the ‘ABC Night Line’ site link above.

Colombo said employees worked 10-hour shifts, four days a week and had set goals — sell $25,000 an hour, which translates to $250,000 a day, $1 million a week, $4 million a month.

While these snakes go about their business, admit it folks, some of you welcome these offers of jacking up your line of credit, or quick borrowing, makes you feel richer and able to pickup more crap, or do things, that you don’t need or couldn’t do nor thought of doing.

How many of you have the newest do-dad that just came down the pike and is agressively advertised as a must have without telling you the why you must have while charging you a monthly fee that you seem to always be going over.

Americans owe $960 billion in credit card debit, according to the consumer advocacy group Americans for Fairness in Lending

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While some are extremely wasteful it causes others to get into financial trouble just trying to exist:

On the other end of the phone were people like Josh and Jennifer Grant, parents of two young girls, Sierra and Sydney, who live in Waterville, Maine. Josh Grant is a self-employed trucker, Jennifer Grant works at a local hospital. They’re $28,000 in debt.

Sitting at the family’s kitchen table, Josh Grant pulled out his latest bill — every few days he spends hundreds of dollars on fuel for his 22-wheel truck. He pays his bill weekly — a total of $6,600 last month. But he spent $7,299 on fuel. That’s how his bill grows — not from spending on lavish dinners or expensive vacations, but from the high cost of diesel as he tries to make a living.

As he’s showing”Nightline” the bill, we discover that he has gone $54 over his $21,000 credit limit — and been charged a $39 over-limit fee.

“I didn’t even see that, to be honest with you,” he said. “When you get charged for being $50 over it’s tough to swallow.” They hope to pay off their debt in five to ten years. “That would be a good scenario,” Jennifer Grant said.

Everyones got their stories and those are growing in numbers, rapidly, in the negative territory, and will only keep growing!

Those who fall for these economic policies, especially coming from the Right, Reagonomics, Trickle Down, Applauding the Wealthy as economic hero’s as they grow even more so, are either totally ignorant of how this country and it’s economy was built or understand that but think there’s an easier way, with alot less physical and mental work, and we can spend spend spend without worries of bills bills bills.

Even the fools in residence, the White House and Much of Congress, thinks the World is always going to be Economically Rosy, No Problems.

Have a devestating Criminal Terrorist Attack, killing and maiming, “Hey Go Shopping Folks!”.

Have Wars of Choice and Total Destruction of Others while Occupying, killing and maiming, “Hey Go Shopping Folks!”.

Have everything Finally start collapsing, the house of empty air and cards falling, “Hey Go Shopping Folks!”.

We once had an economy and workforce that was the envy of the world, we still live like we have that, actually we live and act like we have even more than that, but the facts prove different, but “Hey Go Shopping Folks!”
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There’s two political parties that share the power, which one preaches the false economics now collapsing, and have for years and implemented as they had the power, and which one enables!!

4 comments

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    • jimstaro on September 25, 2008 at 6:21 pm
      Author

    But what bothered Colombo most, she said, was being discouraged from telling military families that they were eligible — by law — to have their interest rates frozen at prime, currently 5 percent.

    “We were told you cannot offer the Soldiers and Sailors Act rate unless they specifically ask. They must say ‘Hi, I’m calling, my husband’s on active duty, I’m aware of Soldiers and Sailors Act. What do I need to do?’ But most Americans aren’t aware of it,” Colombo said.

    • jimstaro on September 25, 2008 at 7:17 pm
      Author

    We once had an economy and workforce that was the envy of the world,

    For the most part we had a Bottom Up economy, wealth was made, people were rewarded for their work, better living conditions were created, and most people actually Saved on their own!!

  1. My mother used to tell me, “Your family may excuse you, your friends may excuse you, but life excuses nothing!”

    I think that a number of factors have gone into the situation you have just described.  The effect of advertising, so to speak:  banks make it seem all appealing to have a credit card, even prestigious, and even the promise of no interest for a year. Part of the problem, I think, is that there is still a naivete on the part of some Americans yet today.  Maybe some do not keep close enough tabs on the credit situation.  And, some, are just plain sad uses, such as loss of a job, or a catastrophic loss of some sort, or a major illness — sometimes, a credit card can be a life and death difference for some people.  The problem is in paying it back, which the credit card companies, themselves, make almost impossible for a lot of people, because if they (borrowers) are late or default on just one of their payments, the credit card companies then throw those persons into exhorbitant high interest rates, such that most payments barely make a dent in the interest owed, much less thr principal balance.  

    So, what I’m really saying is that, while individuals bare responsibility for some of this problem — it’s the lending institutions, themselves, that have largely created the problem.  Of course, they’re going to propound the greatness of the credit card and, I suppose, that’s O.K, but they should spell out all the risks the individuals obtaining them, so that the borrower can make a decision from there.  Let’s face it, the lenders KNOW what they are doing and, often, a borrower DOES NOT KNOW what he or she is doing in the circumstance.

    • sharon on September 25, 2008 at 9:09 pm

    i’ve lived on a cash basis for the last ten years.  there was one credit card i kept for travel, but haven’t used in the last few years – no time or  money while going to school – and don’t know if it still works.  it isn’t always easy, but it keeps me thinking realistally about what i can/not do.  and i have to say that what i buy, i know i want because i think about each purchase and how it will work with the cash flow situation in the short and long term. excellent essay, jimstaro.

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