MudEngineer

Citibank's Problems Are Far from Over

I suggest that for number 1, people who have lost their jobs will pay their minimum monthly payment on the credit cards as long as it takes to max out the credit limit on all of them. They will then use the cash saved and accumulated by doing so to make payments on their house. The can't come after you for a bankruptcy on the credit cards and they can't take your house in bankruptcy.


On Jul 20 09:46 AM Ivan Johnson wrote:

> 1.As people continue to lose their jobs, what are they going to pay?
> They are going to pay their mortgage BEFORE they pay their credit
> cards.
> 2.If you've sold off your toxic mortgate derivatives, you're still
> stuck with your credit card division. The alpha of issuing credit
> cards had a much higher beta than they realized. I'm not sure the
> people running these groups even know what I am talking about.<br/>3.The...
> trade away with these comapnies to make money but the economy is
> burning while we are transfixed my what the First LAdy is wearing
> and the latest on M.Jackson.
> 4. All of these government sponsored credit card bailout programs
> are a scam because they reduce your balance 60% but they send you
> a 1099 for the difference. The IRS wants all of the money now. Now
> you have 2 mouths to feed - who has the time? You are in the clutches
> of the IRS - talk about penalties and interest!

The Directionless Financial Sector

With the current credit card default rate at 10.4% and rising due to the unemployed running out of unemployment benefits, and the large number of underemployed (average workweek is now down to 30 hours); I have been shorting COF looking for poor earnings in the future due to the above. They sent all those credit cards out to anyone who was still breathing and the losses might get huge!