Dave Wrixon

Real and Fake: A Tale of Two Economies

Twas ever thus. Why do think the first thing you learn at school is to tell the time? How could they control individuals that cannot tell the time?

How Are Soros and Paulson Trading?

Actually, he is bit slow on the uptake but Soros now seems to have got it sorted. The BRICs and China in particular is where it is now at.

Banks Curtail Lending as Rising Credit Card Delinquencies Loom

With credit card companies, it is not just the bad customers that are a problem. The good ones are the biggest problem because they are paying off their debts. This leaves their loan portfolios looking distinctly risky. Card companies have real issues, the least of which is that have problems distinguishing the good customers from the bad. They have also in some cases squeezed out the good customers in favor of the higher returns offered by the bad ones. How smart was that?

Certain Banks Are Still Broke

Without the changes to accounting rules and various other bits of subterfuge most of the Banks are still broke. And we all now know that the stress tests were a complete and utter farce.

Credit Card Crunch: Creating a New Generation of Subprime

What is actually wrong, is those that can pay off and close out will, and those that cannot will default.

Their own greed will get them into a lose-lose situation. The one thing that the bankers will learn from all this is if they don't lend they die.

My rates were hiked by 4% for no reason whatsoever. I am not in default and my employment prospects are actually better than they have been in a long time, possibly ever. Yes, I do have a few problems in terms of collateral, but mainly because a British bank cannot lend against a property in Czech Republic, so we have had to finance the bloody thing ourselves, and when I am asked if I am a home owner I end up saying no, otherwise I end up looking like a liar.

Cashflows through sales on my speculative investments in internet domains have pretty much dried up in recent months. But these this business has and will yield return in 1K% per annum zone, so finance charges are not a problem until your cashflow is squeezed. But when the going gets tough you find out who you can depend on and who you cannot. Like elephants, WE NEVER FORGET.


On Mar 27 01:14 PM CJJ wrote:

> A few quick hits:
> -Credit scores are a load of crap. If you don't think they are going
> to be changed as a result of this recession/depression you are stupid.
>
> -The fact people are whining about dormant cards being closed is
> assanine. Again to the above credit scores will be adjusted in the
> near future so keeping lines of credit open is not a "good thing".
>
> -Credit card companies are hiking their rates because they can and
> the rules are going to change soon. I agree its a bad move from the
> credit card users view but it helps the issuer bottom line.
> -What exactly is the problem with scaling available credit back 50%
> if its utilization is under 20%? How do you not see that as a good
> thing? This still leaves over 50% non used balance.
> -Cetin nails it on the head, MOST people have small balances and
> much of increased savings is going to paying off credit.
> -People who do have large balances on many credit cards are criminals.
> Not sure why we are crying about them.
>
> There are mountains of problems out there, not sure why I repeatedly
> have to read about this molehill. Isn't the whole goal here to allow
> credit for creditworthy people? Much of the complaints come from
> people who have been gaming the system and see their days numbered.

Credit Card Crunch: Creating a New Generation of Subprime

Yes, they hiked mine once two often, the most greedy being Capital One and Amex.

I am going to be paying down $50K in credit card debt early next month and the cards are going for good!


On Mar 26 10:23 AM User 55065 wrote:

> when banks are allowed to charge 25% interest against their cost
> of funds at less than 3-4%, greed overtakes and reckless lending
> begins. That is what we had in last few years, every month there
> were on average 30-40 card offers in my bail box. Many in my shoes
> probably had those cards issued and will never be able to pay using
> 20+% interest rate. Greed could only go so far. Perhaps banks will
> learn to loan money to those who have HIGH probability of paying
> heir loans, and charge a reasonable rate for it. Those who can pay
> will not accept 25% rate, those who cannot pay, it is not worth charging
> any rate-meaning no loans.

Credit Card Crunch: Creating a New Generation of Subprime

Yes, they hiked mine once two often, the most greedy being Capital One and Amex.

I am going to be paying down $50K in credit card debt early next month and the cards are going for good!


On Mar 26 10:23 AM User 55065 wrote:

> when banks are allowed to charge 25% interest against their cost
> of funds at less than 3-4%, greed overtakes and reckless lending
> begins. That is what we had in last few years, every month there
> were on average 30-40 card offers in my bail box. Many in my shoes
> probably had those cards issued and will never be able to pay using
> 20+% interest rate. Greed could only go so far. Perhaps banks will
> learn to loan money to those who have HIGH probability of paying
> heir loans, and charge a reasonable rate for it. Those who can pay
> will not accept 25% rate, those who cannot pay, it is not worth charging
> any rate-meaning no loans.

Top Dividend Yields of the Dow Jones Industrial Average

No you are right on the money. Last years dividends have already been paid. It is next years dividends that are of interest.


On Feb 04 09:21 AM aber wrote:

> hallo , nice article but...
> I really don't understand why BAC is still considered/write-about
> like a dividend stock !
> for what i know , and this is the reason because I "trashed" the
> stock , the next BAC dividend will be (if not cancelled totally)
> just 1 cent x share !
> And what about PFE that declared tu cut in half the next dividend
> following the "wyhet-deal" ??
> Am I wrong ? comment ?

Top Dividend Yields of the Dow Jones Industrial Average

Much of the organization will survive, maybe even the name, but that does not mean that existing equity holder will still have a stake.


On Feb 05 05:02 AM jimko wrote:

> BAC will survive.
> They are all over the country and foreign countries.
> If they fail, some town will be left with no banks.

Top Dividend Yields of the Dow Jones Industrial Average

Don't dividend yields price in bad news? The higher the yield, the lower the share price generally is compared with its historical value because next year's dividend is expected to be lower.

Indeed, high yielding stock should be a red light. It shows that the company is in trouble but the extent of the trouble has probably not been fully factored in. Unless, it the kind of business where somebody is going to flick at switch and suddenly it is 2006 all over again, then it is probably worth giving these shares a wide birth until they have bottom out and are at least showing tentative signs of recovery.

Most investors love income, which is why they obsessed with yields. My father is one of them. I can tell you know that has not protected him during this downturn. Having said that he is not exactly market to market. He rarely sells.