Posts Tagged ‘credit cards’

“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?

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

“Are You Shitting Me?”

Senators who are ‘for the people’ overlooked in the financial reform process!

One look at the make-up of the Senate Conferees selected to work with the House to combine the two versions of financial reform into powerful, effective legislation, and we can kiss that notion good-bye!

There is little desire on the part of those chosen to help ‘the people,’ as evidenced by: their positions on many of the issues that are, or could be, part of the original bill, their votes in the past, and their campaign finance histories’.

Of the 12 members selected by the Senate, not a single powerful voice ‘for the people’ is a member of the conferencing process. Many of these Senators are outright or tacitly responsible for most of our financial problems.

What can we expect out of a group like this?

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Posted in Banking, Economy, Finance, Politics, Too Big to Bail | 1 Comment »

“A Half-Fast Bill and Premature Evacuation!”

Powerful Financial Regulation would be good for all Americans!

The Senate passed their version of financial regulation, (S.3217) ‘The Restoring American Financial Stability Act of 2010.’ It now moves to conference to be melded with the House Bill, (HR4173) officially called ‘The Wall Street Reform and Consumer Protection Act of 2009,’ which passed the House 223-202.

Majority Leader, Harry Reid, with the help of Democrats and a few Republicans, in a moment of premature evacuation brought a half-fast piece of legislation to the floor without addressing or revisiting some of the most important amendments up for consideration.

Despite passing with a vote of 59 to 39, the Bill is weak and falls far short of its potential of fixing a messed up banking system, economy, the gambling on derivatives, and the Federal Reserve. Several amendments were added to strengthen the bill, but some of the most important failed to pass or were not brought up for vote. And there is little hope that it will get fixed in Conference.

Conferencing of the Bill will be conducted by Senators Shelby, Chambliss, Lincoln and Representative Barney Frank and a few others. But is it salvageable?

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Posted in Finance, Wall Street | 5 Comments »

“Congress’s Regulatory Deception!”

Efforts to protect consumers are a deception!

Members of the Senate, under the guise of protecting the American people, are deceiving us into believing they have our best interests at heart. But that’s an untruth which elected officials have elevated to a fine art.

Everyone, including Senators and Representatives, realizes that the financial system in the United States needs reforming and that involves re-regulating all aspects of financial activities.

Our politicians understand the need for regulation because it was they that unleashed the predatory beast that is killing us, through a series of legislative deregulations; the ‘real’ cause of the financial meltdown and the extreme pain currently felt on Main Street.

After 30 years of stripping away most of the regulations that protected hard-working Americans from the ills of a predatory society we find ourselves in a political and financial morass.

Yet they are reluctant to help hard-working Americans fight the predatory practices of the Big Banks and other financial services institutions, and the health and pharmaceutical giants.

Proposed legislation is only a partial fix to a multitude of problems. It doesn’t seem like Senators really want to fix the financial problems consumers face.

The important question is why? Why the reluctance to help their constituents, the American people?

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Posted in Banking, Economy, Politics | 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