Posts Tagged ‘credit’

“The Next Looming Bank Crisis: De-leveraging!”

This new article has been posted on The Huffington Post today, Wednesday, December 1st. Click on the link to see the article on The Huffington Post.

Big Banks have another major crisis growing beneath the surface!

Banks are again on the verge of a damaging financial crisis and will plead for help from taxpayers despite it being the product of their own greed. Financial institutions are horrible corporate citizens.

As if the Big Banks, after being saved by the taxpayers, The Federal Reserve, and FASB (Financial Accounting Standards Board), didn’t have enough to worry about with the ongoing foreclosure nightmare possibly costing over a hundred billion dollars, another problem is brewing that is not being talked about.

De-leveraging!

Huge banks still have huge problems masked by TARP, The Fed’s quantitative easing, FASB’s change of Mark to Market accounting, and changes as a result of FinReg passed by Congress.

Bank’s problems include: questionable foreclosure procedures, defaulting mortgages, the repurchase of toxic assets, investors demanding recourse for fraudulent securitized instruments, a potential change in FASB rules forcing aggressive markdowns, and exposure to the European crisis.

Each element, on its own, could change the landscape of banking and plunge us into another financial crisis. The convergence of any two, especially with the uncertainty of the foreclosure mess, could destroy the banking system.

Is the banking system really that fragile?

Read the rest of this entry »

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Posted in Banking, Economy, Finance, HuffPost Articles, Predictions, Too Big to Bail | Comments Off

Paper or Plastic! A Call to Action

Paper or Plastic? A common cry heard everyday at supermarkets, part of an effort at greening America.

In this economic morass in which we find ourselves the cry, Paper or Plastic, takes on a new meaning. It again refers to the greening of America, but it is equally, if not more important, for our survival.

The abuse of plastic—credit and credit cards—has placed the U.S. and its citizens in potential grave financial straits.

Over-leveraged and over-wrought, many people find themselves in untenable, unrecoverable debt. Upside down in their homes, over burdened with credit card loans, and years of car payments, many Americans are feeling stressed over huge debts. But, when will they get relief?

Relief will not come from the banks. Despite being responsible for the financial meltdown that we are experiencing, the banks continue to point the finger at irresponsible consumers while hoarding the dollars that they do have. In many cases the consumers are responsible. But the banks share a greater responsibility for the current economic problems.

Stop using Plastic!

Plastic issued by the banks is killing this country in more ways than one. The use of credit cards has our economy on a precipice and the continued use of plastic threatens to pull us over the edge. Read the rest of this entry »

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Posted in Call to Action, Economy | Comments Off