Consumers fall behind on loans at record pace (Bailouts and handouts not working)

msnbc ^ | 7/7/2009 | reuters

[tobyhill]

Soaring U.S. unemployment and a shrinking economy drove delinquencies on credit card debt to an all-time high in the first quarter as a record number of cash-strapped consumers fell behind on their bills.

Fallout from a still deteriorating housing market caused the rate of consumer loan payments at least 30 days late to rise to 3.23 percent in the January-to-March period from 3.22 percent in the 2008 fourth quarter, the American Bankers Association said.

Delinquencies were the highest since the ABA began tracking the data in 1974. Late payments on home equity borrowings set records, rising to 3.52 percent from 3.03 percent on loans and to 1.89 percent from 1.46 percent on lines of credit.

[cranked]

I know Barry loves it when a plan comes together....

[EagleUSA]

The economy heads toward disaster as the Marxists have planned. Capitalism is a major obstacle to their takeover.

[randita]

And Democrats are champing at the bit to raise taxes to astronomical levels with Cap and Tax and Health Scam.

If people can’t make minimum payments on their credit cards, how the heck are they going to be able to pay increased taxes?

[KoRn]

With all of the money we have thrown away and wasted since last September, we could have given each and every tax payer tens of thousands of dollars.

[kindred]

Blessed is the nation whose God is the LORD, but sin is a reproach to any people.
America refuses the blessings of Jesus the Lord and loves the pleaures of sin, sin is pleasurable for a season but the end thereof is death.
America may have committed suicide this past 60 years since the hippie Marxists became today's politicians.

[parsifal]

This is what I said to you on the other thread. We are in for some real interesting times.

parsy, the prophet

[tobyhill]

Over $5,500 for every single person in America or over $20,000 for every actual taxpayer.

[RayChuang88]

Here's the problem: we have over US$2 trillion sucked out of the US economy by the cash-only underground economy and somewhere between US$12 and US$17 TRILLION in liquid assets owned by American citizens and businesses sitting in offshore financial centers all over the globe outside the USA--all of this done for tax avoidance purposes. In short, somewhere between US$14 and US$19 trillion is no longer circulating in the US financial system.

Change our national and state tax laws to encourage personal savings and capital investment staying in the USA and our economy would turn around in a matter of weeks when all this money comes back to the USA to provide a GIGANTIC new liquidity base for new loans and lines of credit to businesses.

[Neidermeyer]

I agree in principle , the FairTax would solve innumerable problems and bring manufacturing back RIGHT NOW!

However while king Hussein is in charge nobody would have faith enough to commit funds knowing that the rules could change at any moment.

[Joan Kerrey]

nobody would have faith enough to commit funds knowing that the rules could change at any moment.

---

and that’s a huge issue. For the first time in my life I’ve taken some money out of the system where it now draws zero interest, in part because I simply no longer trust anyone or any institution, including government. I don’t even trust the FDIC system anymore. The rules can be changed at any time and penalties for withdrawal could happen at any time. Accuse me of being an idiot or fear monger if you like but at least I know I’ll have access to immediate cash if needed. Interest rates are so low that there is little difference in the return anyway.

[sergeantdave]

My credit card company that I use for business called this afternoon and offered to send me another credit card with a $45,000 limit. Makes no sense. I called the credit card company and it confirmed the offer. Why not just raise my credit limit on the current card another $45,000?”

What the HE double hockey sticks is going on?

[Caipirabob]

Heck, jackson didn't even want to be black. He chose to be white. My young daughter was telling me she had heard that jackson was subject to that skin disease, Vitiligo. She was explaining to me that the TV said he had to stain his skin white.

I explained to her that Vitiligo causes portions of the skin to lose pigmentation, part of him was still black. Since he had "infinity dollars", he could have changed his skin back to black. He CHOSE to be white, because he didn't want to be black. I didn't even have to go into the fact he wanted to be a white woman...

Then I explained that the TV was better at lying to provide what they want you to believe as the truth, not the actual truth.

This experience made an impression on her. I don't think she'll ever believe anything she sees on the TV again without checking.

[Caipirabob]

OMG...I’m so sorry...I have 2 windows open to FR and commented on the wrong article...LOL!!!!!!!

[Frank_2001]

“I didn’t even have to go into the fact he wanted to be a white woman...”

You know, for awhile there, he was looking rather like Elizabeth Taylor in drag. And what about that grotesque nose job, and the red lipstick?? I call BS on that, “he was one of US!” claim. Meanwhile, the economy continues in the crapper, and it’s all Jacko, all the time! Is this “The Twilight Zone”, or what???

[hinckley buzzard]

What the HE double hockey sticks is going on?

New rules go into effect this Fall and lending banks are pulling all kinds of tricks to beat the new regs. I wouldn't trust an offer from a bank today if it was signed in the blood of the bank CEO.

[ANGGAPO]

I think that the only people that thought the stimulus scheme was going to work were in the White House. BOzo just found out that BS will not do it.

[Irish Eyes]

New rules go into effect this Fall and lending banks are pulling all kinds of tricks to beat the new regs. I wouldn't trust an offer from a bank today if it was signed in the blood of the bank CEO.

What new rules are these?

[sergeantdave]

“I wouldn’t trust an offer from a bank today if it was signed in the blood of the bank CEO.”

You’re right, but it’s tempting to use the bank’s loose change to bet long or short on some commodity. Again, as you said, without knowing the new rules going into effect this fall, the bet could be sabotaged.

As a late, great senator once said: “There’s too much changin’ going on heah.”

Take care....