Tuesday, October 28, 2008

Action time again-

I haven't been screaming for folks to call/email/write your congress people recently.  Because, there haven't been many points where we could make much difference- or any.  The great financial debacle is mostly beyond our control.

But.  Once again, I'm seriously ticked off- and just sent my congress-people this:

Here is yet another financial crisis issue that needs the IMMEDIATE attention of the US Congress.

Banks Cutting Credit Across The Board

Essentially, the very banks now being bailed out by the taxpayers, are daily responding by cutting credit to all their customers- including those with completely spotless records. They are raising interest rates, and canceling "inactive" accounts- ie. those the customer actually pays off, every month.

Blatantly- they are doing this with no concern whatsoever for the common good. The rescue was sold to us- we who are paying for it- as a way to stimulate the economy.

The US Congress needs to once again call these CEOs on the carpet- and, now that we are stockholders- FIRE THEM. Now.

And replace them with executives who actually give a damn about the United States, and those who live here.

More boiling anger folks- coming very fast-

Please feel free to copy that, and send it on.  The whole URL for that NYT article is 


or http://tinyurl.com/5wgvqf

Here is another, from my neck of the woods, with personal stories: Banks pull squeeze play on credit cards.


Sigh.  I know.  It may not make a lot of difference in the long run.  But I have a lot of small business friends, who use their totally solid credit to manage their business flow.  Buy inventory, pay it off next month.  Easy with a good credit card- very hard without.  At least, if reasonable credit was maintained for reasonable customers- they could last longer.  For many, this kind of credit cut- and raise in interest rates- means instant ruin.  What a nice idea.

Who ARE these scumbags, and why do we tolerate them?

We - all of us- are now stockholders in those companies.  

Let's scream their house down.  Fast- to keep more people from going under, just because these scumbags are finally afraid of what they've done.  

Let me know what you do!  You know- I'm more than half convinced, even now, that our early screams here about food speculation did make some difference- and at the very least, got the subject up into the headlines.


Secret Garden Supper Club said...

I just paid off my Capital One card and will not use it again unless we are homeless or something. Cap One will probably close it anyways due to my debt/ income ratio.
We're ok unless the roof leaks or the furnace dies...

I am absolutely furious at how the big companies are soaking us little taxpayers for their golden parachutes, parties, bonuses etc. Not to mention how everyone is hollering about Obama's so-called socialism...what are these banks doing??? Accepting huge government handouts? Sounds like they think it's ok.



I'll send a letter to the soon to be dethroned Gordon Smith here in Oregon...I'll also send one to Jeff Merkley, his predecessor...you see, I am calling the Oregon senate race already! :o)

Anonymous said...

Did it; email. Have to admit, my blood did start to boil as I read those articles. How come THEY get to just re-write the agreement- any time, any reason? It takes two to tango. I think I'll re-write my agreement with Chase. What have we got to lose? Your "credit rating"?? Which means- exactly what, now? Screw it.

Anna M said...

On one hand I completely agree with you that we're are bailing out scumbags who do not and never did deserve it.

On the other hand, weaning America off credit might suck in the short term but in the long term it might be better for us and wayyyy worse for them.

Greenpa said...

Anna M- sure. But. Read the second article. There are a great many utterly innocent people, who will be rapidly hurt badly. And it's totally unnecessary. The folks who assiduously kept their credit rating high, all bills paid, so they'd have a little credit available if they ever needed it for a short while- and now it's not only gone, but the $3K the owe - for unexpected medical bills- which was not a problem for their budget at 8% interest- will now bankrupt them at 18%.

Unnecessary; inexcusable.

Kati said...

Found ya through Casaubon's Book, and I did email back during your call to action over the speculation on food, and I've just emailed both Senator Lisa Murkowski and Rep. Don Young over this matter.

(I'm not going to bother with emailing Sen. Ted Stevens as that crook is as much a criminal as these bank CEO's. Hopefully in a week's time, we'll have a new Senator taking Stevens' place that Alaskans can trust to actually act on OUR benefit, instead of his own.)

Anonymous said...

What about the credit used for farm planting, surely you have a bit of screaming coming up about that?
Oh, and the Congress is in recess until later in November. Also, my Rep there, the Resident Commissioner of PR is about to become the Governor of PR, so he won't be there any more.
About the credit situation, I am concerned about farmers having credit and international shipping letters of credit. I think consumers should be using much less credit anyway. My card is to rent cars and to buy stuff on line.
The percentages you have to pay if you ever actually owe anything are criminal. Credit Cards are to be avoided if at all possible.
I am curious however: how will credit card companies make any money if no one is using them?
And the latest twist {I actually don't like this one, it seems very morally hazardous to me} is that there is a very serious movement afoot to have a credit card forgiveness program. Makes sense really. Wall Street: all is forgiven. Money Markets: all is forgiven. Mortgage holders: all is forgiven. Credit Card junkies: oh you po' little things!
I am of the really angry school of thought that says let all the entities fail, declare bankruptcy, and let's get on with it. A little stimulus here, a little stimulus there, and soon the national debt is at $15 trillion. I think we are there now.
I happen to live way way outside the median US citizen life and way off the beaten track, so I don't really get all that angry. Oh, the best part is that I live in the only place in the world where I don't have to pay ANY US Federal Government taxes. My Friends, as John would say, how wonderful is that?

Gina said...

I can tell you one way credit card companies make money when you are not using them. It's called a maintenance fee. I, too, paid off a capt 1 credit card and it stayed in a drawer, unused for two years. Then, a charge appeared called "maintenance fee"-$59. I called them up and was told it was because I don't use the card. They canceled it and I planned to cancel them until a credit seminar I took at work told me I would be hurting my credit by canceling the card. ok. So, I kept the card and once a year I put gas or some affordable thing on it and pay it off. It is ridiculous and I still debate cancelling it (but haven't yet).

Off topic a bit, sorry, just wanted to let those here know this.

Will be sending off emails!

Lee said...

I don't understand why you're so upset.

I'm assuming the banks are not actually suddenly demanding people repay the amounts owing in full, but are just reducing the amount you can lend, right?

From my understanding of the credit crunch, the reason the US (and various other parts of the world) is in such a big mess is precisely BECAUSE people have been spending outside their earnings. So reducing the amount people can loan is a good thing, to my way of thinking.

If the result in the short term is that people have tight budgets, that's tough, but the truth is we all of us have to learn to live inside our incomes, not outside them.

This is a huge period of re-adjustment, and a lot of people are going to lose their jobs and be unemployed, but it had to happen sooner or later. I wish it didn't happen while I'm around, but it has.

Certainly the consumer lifestyle had to end as far as the planet goes. We don't have a choice, as a species, but to learn to roll back, live within our means, and live simply and frugally. Credit has been a big part of the problem - maybe reducing credit is a step towards the solution.

Just my 2c.

Anonymous said...

I have showed up at our Legislature with a pitch-fork before. With a small gift shop straw bale on the prongs so as not to scare people. Anyway, hunker down, fight for the greater good and pass some goodwill ($$ or whatever) on to your neighbor if you can this Christmas and do it when and if you can. Oh and if they live on this earth, they are your neighbor. Re-evaluate your expectations in life so others can have one. Cheers and God bless.