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Hewlett-Packard Company Message Board

  • n9423u n9423u Jul 18, 2005 11:02 AM Flag

    Economy Udate

    We've all see the stories, wage cuts for the airline industry, layoffs for the tech industries, GM and Ford can't sell cars unless they are at employee discount prices, oil hitting new all time highs of $62/brl

    To top it off greenspan and our current administation are clueless. For the last two months inflation has been flat and yet the fed. keeps bumping up those interest rates causing ARM morgages and credit card payments to go up.

    If the wage freezes/cuts and layoffs were not enough, we have the credit card companies just about doubling their minimum payments on their cards. THat is a sign of trouble on the horizon my friends. THey are trying to get their mone while they can, cause it's gonna get worse !!

    Good thing the card companies got their new bankrupcy laws passed, come Oct. the card companies can really jack you around increasing your payments and interest rates to cover their losses.

    You'll be blamed though.

    IT's all yur fault. after you got your 30% wage cut, your exsisting floating interst rates increased, and your minimum payments doubled why how could you be so irresponsibile to spend beyond your means like that. Don't you guys/gals know how to budget - lol

    Check the newswire for Citicorp today. You know citicorp one of the major credit card issuers don't ya..well....

    clip>>>>>

    Citigroup profit jumps, misses estimates
    Monday July 18, 10:30 am ET
    By Jonathan Stempel

    NEW YORK (Reuters) - Citigroup Inc. (NYSE:C - News) on Monday reported quarterly profit that missed analysts' estimates, as fixed-income trading revenue plunged and higher U.S. bankruptcies hurt credit card revenue, sending its shares down 2 percent......

    <<<<<<clip

    Golly Gee bankruptcies are up I wonder why -lol

    Some of you have see my previous post stating housing foreclosure rates and bankrupcies and here the latest from the foreclosure dot com data. NINE THOUSAND BANKRUPTCIES ADDED TO THE BACKLOG SINCE LAST NIGHT !!

    Last update: 7/17/05 8:57 PM
    Foreclosures: 81,204
    Preforeclosures: 125,581
    Bankruptcies: 248,347
    FSBOs: 46,463


    Last update: 7/18/05 10:19 AM
    Foreclosures: 81,204
    Preforeclosures: 125,360
    Bankruptcies: 257,390
    FSBOs: 46,463

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    • (continued from last post )

      SO as you see on the businesswire, citicorp is complaining, blaming the increase number of bankruptcies for their profit shortfall.

      But's whats going on over at MBNA bank (sym: KRB ) another major credit card company.

      Well MBNA bank is being bought out by bank of america and their latest quarter results include some special items that cloud the investment picture a little.

      Nonetheless i though this comment by MBNA was interesting....

      clip>>>>

      Wilmington-based MBNA, the world's largest independent credit-card issuer, said total volume rose 9.6 percent to $57 billion. Cash advance volume spiked 9.2 percent to $20.1 billion......

      <<<<<<<<clip

      Now why do you suppose CASH ADVANCE VOLUME IS SPIKING on credit cards.

      Why do people feel the need for cash advances, is it because they have been laid off and need to make car payments, mortgage payments, etc. Is it because their wages have been cut by 20%..30% and they are trying desperatly to maintain their current life styles?

      Are the cash advances spiking because people have already maxed out on their cash out re-fi home loans, their equity tapped out, and there is no where else to turn.

      You'll see the bankruptise first, than you'll see it show up in the credit card companies financial reports.

      But remember all those fancy interest only ARM high risk mortgages, who's gonna take the hit on those as the foreclosures and bankrupttcies rise. As the credit card cash advance money dries up.

      THose high risk morgages were all bundled up and sold to mutual funds and pension funds, and in case you've been living under a rock we all know what shape the pension funds are already in. If you doubt my word check the pbgc dot gov web site for the stats.

      The dominos are falling, once the pension funds begin experiencing losses from the real estate foreclosures that inhibits their ability to invest and take on risk.

      COmpanies running these pensions plans will need to direct more of their profits into pension plans as required by law to meet funding requirements. It's a trickle down effect that becomes more than a trickle, it becomes a tsunami sucking money out of R &D , sucking oney out of investor dividend payments, sucking money out the re-investment pool.

      Tens of thousands of people are about to experience indebture servitude big time because when the flood of foreclosures and bankruptcies hit housing prices will drop and many will be in a condition that is know as "being upside down" on their home loans.

      Being upside down on a morgage is where you end up owing more on your morgage than your home is worth. In other words even if you sold your home you still have to make payments to get out of the debt. -

      Not a very nice place to be.

      • 2 Replies to n9423u
      • I think your posts are perspicacious and right on. People who are watching know there's a major financial implosion about to happen. Cassandras are everywhere. But here's my question for you: what is one supposed to do about it? If your financial house is in order, where are you to put your money? Under the mattress?

      • N, what IS your point with all of this constant negativity? Instead of behaving like Chicken Little screaming, "The sky is falling, the sky is falling!" how about just preparing for what you fear? If you are out of debt, are diversified into stocks, bonds, gold, etc.,have a savings account, and learned to live within your means, then you are going to be just fine, especially if you know how to raise a garden and process your own food. You can't help those out there who are totally dependent. Sometimes it takes pain to teach people a new way, so just be prepared and help teach others to do the same.

 
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