Bleumangue

Love Affair With Credit Cards Is on the Rocks

Stupidity lending came to the public because of greed. The CC companies knew that most people repay over time. The CC companies got their monies from the POS and the user. People who used credit as it should be used were (and probably still are) called "DEADBEATS". The latter did not generate multiples of what POS were forced to pay. Some stores got smart and started to refuse to honor certain CC cards. More people carrying balances were needed in this crazed ponzi-like scheme. More stupidity lending ensued. Couple that with the constant barrage of "BUY" it was not science that it might lead to stupidity borrowing. But gaming the system can't alone explain all the defaults. The CC companies at one point a few years back started offering year-end summary spending reports. Personally, this was a bit scary - but it did show that data could be amassed and vectored. Yet, Nobody on the the lending end noticed that users were charging "GROCERIES". WTF did the CC companies think people were using cash for? Plasma TVs? The CC companies are not in the business of lending money. They are in the business of keeping their employees paid with funds provided by people in debt. Amoral? No. Imprudent, greedy to excess, and self-centered? Yes. This country survives on our selling of each others' shit to ourselves whether it's called "services" or "arts & crafts" or "lawn sale". Now perhaps if we were selling that shit to other countries we wouldn't be buying food on credit. I also will note that the major reason that people go into debt is "health-related". Throw job-loss or pay reduction for any reason into the mix and there is a recipe for a credit disaster. I firmly believe that identity theft is rampant not because somebody wants to be a spy with multiple passports but that it will provide access to more credit. But I digress. The bottom line here is that a user in financial trouble regardless of the fault will grab at any lifeline to stay alive and hopeful. If Moderation was an operative word on both sides of this mess then it might be a lot easier to discern the gamers from the needy and to get a viable start on what not to do in the future.

Bank of America Buys Countrywide - Who Gains and Loses?

Deep pockets or not, I don't think that anybody at BofA will ever be worried about CFC repercussions via "vulture lawyers". Anyone who's ever dealt with BofA and their parting with money may know what I'm talking about. The great-great grand vulture children lawyers will still probably be getting a run-around on the BofA phone lines. Please press cube root of pi for ancient Klingon. It would be fun to finally see a behemoth like BofA squish some of these legal lottery adherents who create nothing but rising costs for the rest of us. I say: All the way, BofA!