Comments on: Banks May Pull Back $2 Trillion in Credit Lines http://donklephant.com/2008/12/01/banks-may-pull-back-2-trillion-in-credit-lines/ Big Teeth. Huge Ass. Surprisingly Reasonable. Sun, 08 Nov 2009 23:59:03 -0800 http://wordpress.org/?v=2.8.4 hourly 1 By: Donklephant » Blog Archive » Recession Started In December 2007 http://donklephant.com/2008/12/01/banks-may-pull-back-2-trillion-in-credit-lines/comment-page-1/#comment-426601 Donklephant » Blog Archive » Recession Started In December 2007 Tue, 02 Dec 2008 01:11:27 +0000 http://donklephant.com/?p=11525#comment-426601 [...] with the news of a possible $2 trillion pull back on credit by the banks, I think we’re look at the potential for a serious deflation. And if that happens, watch out, [...] [...] with the news of a possible $2 trillion pull back on credit by the banks, I think we’re look at the potential for a serious deflation. And if that happens, watch out, [...]

]]> By: Agnostick http://donklephant.com/2008/12/01/banks-may-pull-back-2-trillion-in-credit-lines/comment-page-1/#comment-426551 Agnostick Mon, 01 Dec 2008 20:34:27 +0000 http://donklephant.com/?p=11525#comment-426551 While my fellow consumers may have my shoulder to lean on or cry on, I'll shed no tears for the credit card companies that might take on some water, or even outright capsize, because of this. <b>Remember: Most of these credit card companies have spent the last 10-15 years flooding our mailboxes with loose, easy, "pre-approved" offers of all sorts. Many of them have even been stalking and preying on college students, setting up card tables on campuses and handing out cards to incoming freshmen with little or no employment history.</b> I damn sure don't want to see any federal bailout money going to credit card companies. Agnostick agnostick@excite.com While my fellow consumers may have my shoulder to lean on or cry on, I’ll shed no tears for the credit card companies that might take on some water, or even outright capsize, because of this.

Remember: Most of these credit card companies have spent the last 10-15 years flooding our mailboxes with loose, easy, “pre-approved” offers of all sorts. Many of them have even been stalking and preying on college students, setting up card tables on campuses and handing out cards to incoming freshmen with little or no employment history.

I damn sure don’t want to see any federal bailout money going to credit card companies.

Agnostick
agnostick@excite.com

]]> By: kranky kritter http://donklephant.com/2008/12/01/banks-may-pull-back-2-trillion-in-credit-lines/comment-page-1/#comment-426510 kranky kritter Mon, 01 Dec 2008 18:38:00 +0000 http://donklephant.com/?p=11525#comment-426510 Let's see how it plays out. It makes sense for consumer lenders to limit their exposure. But the bottom line for them is that the way they make money is by loaning people more money than they can quickly pay back, at high interest rates. So I expect they'll shut off credit more quickly to those folks who are digging the biggest holes most quickly. And they'll probably do some checking before increasing credit lines. But for folks with jobs and consistent incomes, the credit card companies definitely DO want to keep them spending at or beyond their means. I expect credit card companies to start offering some folks LOWER interest rates to try and prevent some defaults. This is something that will actually be in their interests if unemployment goes up another 3% or more. So I hope the government does step in to "help" companies figure this out. Let’s see how it plays out. It makes sense for consumer lenders to limit their exposure. But the bottom line for them is that the way they make money is by loaning people more money than they can quickly pay back, at high interest rates.

So I expect they’ll shut off credit more quickly to those folks who are digging the biggest holes most quickly. And they’ll probably do some checking before increasing credit lines. But for folks with jobs and consistent incomes, the credit card companies definitely DO want to keep them spending at or beyond their means.

I expect credit card companies to start offering some folks LOWER interest rates to try and prevent some defaults. This is something that will actually be in their interests if unemployment goes up another 3% or more. So I hope the government does step in to “help” companies figure this out.

]]> By: mw http://donklephant.com/2008/12/01/banks-may-pull-back-2-trillion-in-credit-lines/comment-page-1/#comment-426484 mw Mon, 01 Dec 2008 17:56:15 +0000 http://donklephant.com/?p=11525#comment-426484 <blockquote><i>"In my darker moments, I worry that our economy is a house of cards built with easy credit."</i> - ASC</blockquote> See.. I would call that a moment of perfect clarity.

“In my darker moments, I worry that our economy is a house of cards built with easy credit.” – ASC

See.. I would call that a moment of perfect clarity.

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