Comments on CreditMattersBlog.com: Rising Credit Card Losses Are Next Challenge For B...

Sam, you are right. "Too many people are giving t...

2009-05-12T15:15:20.438-04:00

Sam, you are right. "Too many people are giving the house back, which is their contractual right, and the banks weren't prepared."

But housing prices have dropped, in the past, without destroying the economy.

Why is this time different?

Answer: the bankers invented a new casino game (credit default swaps) and used it to build a SIXTY TRILLION DOLLAR tower of

Correct you are. Sam said.... I especially agree...

2009-05-12T13:36:22.169-04:00

Correct you are. Sam said....

I especially agree with the Bank being in control. The bank truly owns the asset until the borrower pays in full. With a 30 yr mortgage, the banks are on the hook either way for several decades. As costs for homes escalate the banks will have to take more responsibility, like it or not.

I have heard of 40-50 mortages: guessing the banks

Parkaboy I take it you agree with me and not carna...

2009-05-12T12:28:32.802-04:00

Parkaboy I take it you agree with me and not carnap from the content of your paragraph. You are absolutely right. The day professionals start playing the victim we have a problem on our hands. They should know how to set people up with good financial products and loans. If they don't they need to get into another business. Just handing out money and then playing the victim and saying

Good point Carnap. In the past banks were smar...

2009-05-12T10:50:50.257-04:00

Good point Carnap.

In the past banks were smart enough to set the borrower up to succeed. Now greed has taken over as the primary incentive , and even though the banks had access to more detailed economic information than the average consumer ( trends, indicators, etc) and could see the shift to less stable monetary ground they still continued to lend.

Additionally,

Carnap It is the banks fault and here is why. In...

2009-05-12T02:13:45.348-04:00

Carnap

It is the banks fault and here is why. In theory a casino will let you gamble because they know the odds, they like the odds, and although they occasionally take a loss they have calculated their risk and make sure they win in the end.

A bank should not let a consumer gamble, if they do they better know the risks and be ready to deal with them if they don't pan out.

"...there's a chance you've been financially devas...

2009-05-11T22:56:31.182-04:00

"...there's a chance you've been financially devastated based entirely on the timing of when you bought your home. For example, my house has lost 4 years of value from its high."

Yeah, but so what? The guy that gambled in Vegas may walk away financially devastated too. Its not the banks fault that people did not take seriously the risk that their house may lose value. Its not like

In other words BlackDiamond " the banks can't loos...

2009-05-11T21:44:51.371-04:00

In other words BlackDiamond " the banks can't loose"

Kinda like the Health care announcment today claiming the industry will be reducing health care costs by 2 billion over the next 10 years.

Betcha there is bail out money comming for health care as well.

"Also, the banks did not make people purchase home...

2009-05-11T18:25:57.780-04:00

"Also, the banks did not make people purchase homes they could not afford."

No, and those people who defaulted have their own set of issues. If you played by the rules, and you still pay your mortgage, there's a chance you've been financially devastated based entirely on the timing of when you bought your home. For example, my house has lost 4 years of value from its high. If I had

Well, there is plenty of blame to go around. Neith...

2009-05-11T18:10:07.463-04:00

Well, there is plenty of blame to go around. Neither the banks or the public are innocent in all this. The banks made it a little too easy to get loans, with their low docs, no docs loans, not to metion the ballon, interest only or ARM mortgages they offered. AND the public went into a mass feeding frenzy, eating all the lies and BS from the banks. Most people who couldnt afford a home shouldnt

"They now charge 15-30% for money that costs them ...

2009-05-11T17:16:05.278-04:00

"They now charge 15-30% for money that costs them .5% to borrow, right?"

The banks borrowing costs have gone up, not down.

The so called "bailout" not directly used to lend, rather its used to keep the banks solvent.

Also, the banks did not make people purchase homes they could not afford. In a sense the lenders are victims or a greedy public that gambled in

BD, rants always welcome.

2009-05-11T14:43:22.051-04:00

BD, rants always welcome.

Oh, and sorry for the rant. It seemed reasonable a...

2009-05-11T14:42:37.011-04:00

Oh, and sorry for the rant. It seemed reasonable at the time.

Or for those who have the green "Oh Sh*t" key, wor...

2009-05-11T14:03:43.351-04:00

Or for those who have the green "Oh Sh*t" key, works just as well..

Mal, hit the ESC key. :)

2009-05-11T12:35:03.298-04:00

Mal, hit the ESC key. :)

where's that 'global economy reset button' on my k...

2009-05-11T12:32:51.655-04:00

where's that 'global economy reset button' on my keyboard...? I keep looking for it, but I can't see to find it..

Hey BlackDiamond, I'm not arguing. And very well p...

2009-05-11T12:24:15.281-04:00

Hey BlackDiamond, I'm not arguing. And very well put.

b_in_sc

It's their own damn fault. Many of these banks are...

2009-05-11T11:18:55.134-04:00

It's their own damn fault. Many of these banks are responsible for hosing up the housing market, making 20% of underwater homeowners (30% here in California) look at their house values and contemplate bankruptcy. Now they've stressed out cardholders finances by raising rates and fees for such reasons as "economic climate."

On top of this, they've used public funds to prop themselves

HSBC Says 2009 Will Be ‘Tough’ as U.S. Bad Debts R...

2009-05-11T09:50:06.944-04:00

HSBC Says 2009 Will Be ‘Tough’ as U.S. Bad Debts Rise

http://www.bloomberg.com/apps/news?pid=20601085&sid=a0RC5rtqYWdM&refer=europe