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Thread: Consumers Use Credit Cards for Necessities as Inflation Cuts U.S. Incomes

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    Re: Consumers Use Credit Cards for Necessities as Inflation Cuts U.S. Incomes

    Quote Originally Posted by cpwill View Post
    to the extent that it is, the single determinant factor seems to be the breakdown of the family. as we move more and more into single-parent households, those are the households that, demographically, drop out of the middle and upper middle quintiles. and their pay has indeed gone up.
    That does not seem right to me. Got a source to back that up or did you just pull that out of thin air?
    “No men are anywhere, and I’m allowed to go in, because I’m the owner of the pageant and therefore I’m inspecting it,” Trump said... “‘Is everyone OK’? You know, they’re standing there with no clothes. ‘Is everybody OK?’ And you see these incredible looking women, and so I sort of get away with things like that.”

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    Re: Consumers Use Credit Cards for Necessities as Inflation Cuts U.S. Incomes

    You know, Mickey, there used to be a time when it was almost impossible to get a credit card. It took me years because I was a poor student and I had moved a lot in a 7-8 year span. Now, credit card companies make it a point to have their people on university campuses to solicit customers. Why? Because they make more in interest from those who do pay at least the minimum, than those who default. So in this case, risk is much more profitable to credit card companies (does this sound familiar? If not, look into what happened when Wall Street crashed).

    When it comes to credit cards, Visa is absolutely delighted at the customers that simply pay the minimum every month. For instance, if someone bought a $700 washing machine on credit, and paid the minimum ever month, the machine can cost something ridiculous like $10,000 by the time it’s fully paid off. And many people do get caught in that trap.

    There also used to be a time where many were turned down for mortgages. When I worked in the high tech sector, I could not get one because even though I made good coin, my job was volatile.

    Why is it different now? We must be asking ourselves that question.
    “No men are anywhere, and I’m allowed to go in, because I’m the owner of the pageant and therefore I’m inspecting it,” Trump said... “‘Is everyone OK’? You know, they’re standing there with no clothes. ‘Is everybody OK?’ And you see these incredible looking women, and so I sort of get away with things like that.”

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    Re: Consumers Use Credit Cards for Necessities as Inflation Cuts U.S. Incomes

    Back around 1980, department stores, grocery stores, and general stores decided that they would not accept your personal check unless you produced a photo ID and a major credit card. That alone accounted for millions of people getting cards that prior to that time never even wanted one. All of a sudden everyone had a credit card, which of course led to being accepted for even more credit cards. Laws have since been passed that make the stores take your check without seeing a credit card, but it was too late. The damage was already done.

    And like you stated, millions of people making high interest only minimum payments will allow the banks to handle many defaults. The rates are so bad that loan sharks had to raise theirs just to keep up.
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    The systems that ensure freedom and liberty are breaking down and fundamentalism is growing. Nobody is righteous anymore.


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    Re: Consumers Use Credit Cards for Necessities as Inflation Cuts U.S. Incomes

    Quote Originally Posted by Middleground View Post
    There also used to be a time where many were turned down for mortgages. When I worked in the high tech sector, I could not get one because even though I made good coin, my job was volatile.

    Why is it different now? We must be asking ourselves that question.
    For credit cards, a big part of it was accessibility to computers and massive consumer databases. With the right algorithm, they could reduce risk and maximize profit by targeting people with financial histories suggesting they were responsible enough not to default, but not so responsible that they didn't carry a balance.

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    Re: Consumers Use Credit Cards for Necessities as Inflation Cuts U.S. Incomes

    Quote Originally Posted by Taylor View Post
    You clearly have no idea what you're talking about. The tea party has been pressuring Obama since they were elected to follow through on his promise to double exports. Unfortunately for them, Obama, and the rest of the country, the democrat party won't act because of pressure from the unions.


    Well, duh. As is often the case, the issue is not whether to do something but how to go about it.
    And how is the TP exactly pressuring Obama, by union busting? Unions want to protect their jobs, not destroy their jobs. It isn't in anybody's economic interest to destroy their economic utility, which is why this argument makes zero sense to anybody who understands economics. Individuals seek to maximize their utility, not destroy it.

    A union will fight to keep a job here, before they would logically destroy their economic self interest and their nation's economy.

    Everything is the fault of the lazy and the unions, right?

    This is exactly why I said the TP is the conservative trend of the moment and is ignorance. You're not saying anything new... same old message on steroids.

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    Re: Consumers Use Credit Cards for Necessities as Inflation Cuts U.S. Incomes

    Quote Originally Posted by cpwill View Post
    living on credit cards is stupid. just like getting an adjustable rate mortgage on a house you can't afford, and then taking out a second mortgage to serve as the downpayment for a vacation home is stupid. We've become an instant-gratification culture, and it's made us do very, very stupid things. like live on credit cards.



    which must have been why Nov 2010 was such a banner election for Democrats...
    Opinions are like assholes... Arguing over how to properly judge people is a waste of time, and I personally am not interested in hearing your opinion or anybody else's...

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    Re: Consumers Use Credit Cards for Necessities as Inflation Cuts U.S. Incomes

    Quote Originally Posted by Taylor View Post

    Well, duh. As is often the case, the issue is not whether to do something but how to go about it.
    I don't hear people going about it at all... The last time a president really did much about welfare reform was Clinton. People don't campaign on it, and you didn't even offer up solutions yourself, just rhetoric which btw... nobody has any issues with what you said. Yes, there are cycles of dependency, people aren't helping themselves, welfare is a failure in that sense... It's a pretty common and widely held attitude.

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    Re: Consumers Use Credit Cards for Necessities as Inflation Cuts U.S. Incomes

    Quote Originally Posted by Middleground View Post
    That does not seem right to me. Got a source to back that up or did you just pull that out of thin air?
    A lot of things boil down to the breakdown of the family structure to him... He is mad that some people don't even want to have kids, because he thinks white, Christian American babies are culturally superior.

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    Re: Consumers Use Credit Cards for Necessities as Inflation Cuts U.S. Incomes

    Quote Originally Posted by Middleground View Post
    You know, Mickey, there used to be a time when it was almost impossible to get a credit card. It took me years because I was a poor student and I had moved a lot in a 7-8 year span. Now, credit card companies make it a point to have their people on university campuses to solicit customers. Why? Because they make more in interest from those who do pay at least the minimum, than those who default. So in this case, risk is much more profitable to credit card companies (does this sound familiar? If not, look into what happened when Wall Street crashed).

    When it comes to credit cards, Visa is absolutely delighted at the customers that simply pay the minimum every month. For instance, if someone bought a $700 washing machine on credit, and paid the minimum ever month, the machine can cost something ridiculous like $10,000 by the time it’s fully paid off. And many people do get caught in that trap.

    There also used to be a time where many were turned down for mortgages. When I worked in the high tech sector, I could not get one because even though I made good coin, my job was volatile.

    Why is it different now? We must be asking ourselves that question.
    This is definitely true. It's the same with those quick loan places... when the recession first hit, those places made a killing and business went way up. As long as the poor keeps living on credit, they'll keep falling further into poverty. It's very sad, but people have to eat and buy groceries some way.

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    Re: Consumers Use Credit Cards for Necessities as Inflation Cuts U.S. Incomes

    Prior to this recession, it was presumed by many, middle class, wall street, and corporations alike, that wealth was ever increasing. They would simply be more and more money as time went by. Everyone borrowed money assuming that they would be able to pay it off later. That was the real impact of the housing crash and the recession. Suddenly, no one knew how they were going to pay off their debt. Millions lost their homes, not just because they had taken the subprime (a soft way of saying "ripoff") mortgages, but because they had been betting on a financial system that turned out not to work. Are these people lazy and stupid for believing what they were told? Of course not.

    The issue at hand is that many are still in debt, and many have lost their life savings to pay off the debt they had. It is not so easy to escape this situation, especially with so many losing their jobs, their homes, their savings... And the means to find a better job, an education, becomes more and more expensive. So few young people begin their careers without owing much of what they earn to some bank in exchange for the possibility of earning anything in the first place. Our whole economy was built on debt, and that fragile balance has come crashing down. It didn't used to matter who had all the wealth, because we all operated on fictional money. Now the fake money is gone, and everyone needs the real wealth to live.

    Don't be so quick to judge those in need. It's not just paying the rent today that's a challenge. It's saving for retirement, sending children to a good enough school so that they can perhaps escape the debt trap. We've built a bad system, and now we're paying for it. And unfortunately, those who are paying are those least able to do so.
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