Respirate

More Reasons to Break the Plastic Habit

The real profit is in customers with lower credit ratings, higher risk, and frequently pay penalties and fees. Those of us (SA readers) with our financial houses in order want value for our money. So it goes.

Why Credit Cards Can't Afford to Raise Fees

Mr. Newman, thanks for using common sense here. Many of us get sick of the nonstop gloom & doom posted on SA.

You're exactly right, as your examples clearly illustrate. There will be card providers as long as there's profit to be made in the transaction fees. Providers will compete for good customers, including the 1/3rd of us who regularly pay off balances. If not, the fortunate and responsible of us have other options.

Thanks for the realistic outlook.

"We are screwed and Congress is trying to guarantee our demise." Give me a damn break.

--R

Credit Card Rules: No Consumers Need Worry

Here's a newer article posted on SA, which explains why this isn't another end-of-the-world-as-we... scenario:

"Credit card users who carry a balance are used to [various fees], but now the card companies are hoping to force them on the 50 million Americans who pay off their balances every month. I can’t wait to watch them try.

Consumers who run up big credit-card balances and take a long time to pay them off are at the mercy of their lenders, which leaves them virtually no leverage. But consumers who stay out of debt get to call the shots. And they’re the ones who will decide whether to pay new credit card fees. "

As I posted earlier: we have options.

seekingalpha.com/artic...

--R

Credit Card Rules: No Consumers Need Worry

Thanks for a good, common sense take on the new credit card regs. Too often SA readers are barraged with "sky is falling" takes on everything that happens. How afraid are we supposed to be of change?

I happen to be in the group that pays cards off monthly and uses them strictly as a convenience. Supposedly we're the ones the scare mongers say will be hurt by the new restrictions on card issuers. Hurt? Not likely. As Felix points out, this group still generates interchange profits for the companies. I doubt we'll be left out. Fortunately, people in this group have options if the rules impose fees or cause our card usage to change.

The sky's staying in place for another day.

--R

Monday Market Review: Bulls Back with a Vengence

Vikram, if you can answer a question: What level are you looking at for an OIH trade? $86-87?

I agree that 'Services' is the sweet spot in the oil sector. It's easily outpaced the S&P in recent months and may be expensive in the short term.
Thanks -- R

The Escalator of Life Is Going Down (Part 2)

The sky is falling! Well, according to you. Fortunately, most of us aren't giving up quite so easily.

The writer's inciteful little Op Ed piece presents and embellishes with inaccuaracies some very real problems facing this generation of Americans. It's introduced with a very weak 'shoelaces caught in the escalator of life and ripped off your foot' analogy. Such drama. Picture of the Hindenburg? Is that supposed to support your thesis in some meaningful way? Are graphic words and pictures supposed to arouse our anger, as if we need more help with that? C'mon, give SeekingAlpha readers a little credit.

Unfortunately, you present no solutions to the myriad problems our nation faces, except to conclude that throwing out Democrats so as to presumably elect more Republicans, will fix them. As if there's not plenty of blame to go around. Pretty shallow.

Answers are apparently very simple in your world; real world solutions are more complex, harder to implement, and don't rest on partisan politics as a cornerstone of success.

Eight Reasons Bank of America Is Going to $20

Excellent article, Jason. I agree with you that much could go right for BoA. Thanks for making that case. The sheer terror of these admittedly frightening times and unprecedented turmoil (Lehman, Bear, GM, Countrywide, ...) has investors overlooking BoA's underlying strength. BoA will be a survivor and will not be nationalized.

Honesty disclosure: Long BAC.