Credit card crisis next?

Powerful anonymous email that Joe Nocera posted on his New York Times blog.  Joe says its from an anonymous banker who sees the credit card debt as the next meltdown.  That’s not news but the powerful part of the email is this section:

“I received a catalog today from Casual Living and in big bold print on the front page, it said “BUY NOW, PAY NOTHING”. Then in significantly smaller print underneath, it said, (until April). That mantra has been sung throughout the credit markets over the last 10 years. The banks waive a carrot in front of the consumer and reel them in and encourage them to go deeper and deeper into debt. They do this by prescreening customers through credit reporting agencies, mailing offers to apply, and to transfer balances at teaser rates or zero percent financing. They base it on credit score and not on capacity to repay. A good credit score does not equate to the ability to repay debt.”

Isn’t the world upside down when the banks, who knowingly entice consumers any which way they can to borrow money, are bailed out but these consumers only recourse is through punitive bankruptcy procedures?

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2 Responses to “Credit card crisis next?”

  1. David Miller Says:

    I hope the lessons of this economic meltdown are not lost on consumers. We can’t continue to be lead like sheep to the slaughter by greedy banks out after shortterm profits and by a culture that encourages us to spend money we don’t have on things we can’t afford. Sure, we are also to blame, but only because we have let uourselves be seduced and suckered.

  2. Randy Wilson Says:

    I couldn’t agree more David.

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