So how bad before it gets better (Credit law reform)

[Anon2k9]

Was listening to GMA this morning, and they were talking about the new laws that are going into effect in Feb 2010. They mentioned that, basically, that credit-card companies are going to pull out a whole new bag of tricks to stick it to people; everything from penalties for paying down a card, to junking fixed rate and jacking people around with variable rates.

All I could think is, in a recession, that they're just guaranteeing that bankruptcies continue to climb. Which got me to wondering: Are they going [meaning their lobbyist pitbulls] going to make a go at tightening BK laws up even further.

Is anyone else, like me, thinking that the next 30 days or so are going to be horrible on people with revolving credit lines?

[Faust]

No because eventually they will be meeting up with a equally nasty lobbiest group call the Trail Lawyers Association. When bk's continue to spike and the courts become swamped with bk's I predict the laws will sway more toward the consumer. The US court system will have had enough of the bank's bs and will strike back.

[Anon2k9]

I would expect that they would have already started to swing back to the consumer. Consider that we're still looking down a long road with the recession.

We talk about bailing these companies out, but all we're doing is continuing to twist the knife in our own back. Why not role back the BK rules, slacken up-- at least in the short term-- and get some of this bad debt on off the books.

After all, think about it: if I'm out of work and facing losing my house and trying to keep food on the table, the last thing I'm worrying about is paying the Capital One bill. They're not going to get their money anyway.

[momisery]

Another point would be that many who are going BK never have, and have had good credit scores in the past. So, BK was not something they planned on doing ever! They planned on paying the bills. Punishment should be aimed at those who abuse the laws.

[banca rotta]

I would expect that they would have already started to swing back to the consumer. Consider that we're still looking down a long road with the recession.

We talk about bailing these companies out, but all we're doing is continuing to twist the knife in our own back. Why not role back the BK rules, slacken up-- at least in the short term-- and get some of this bad debt on off the books.

After all, think about it: if I'm out of work and facing losing my house and trying to keep food on the table, the last thing I'm worrying about is paying the Capital One bill. They're not going to get their money anyway.

It appears that way on the surface, but as they say in the game Monopoly, "The Bank Never Goes Broke".

The money secretly flows back to the banks with either bailouts or inflation.

[Fresh]

The only thing I wanted to add to these excellent comments is that it seems like we are truly at the beginning of the blood flowing for consumers. I think 2009 is going to look like child's play when we really get into 2010. Plus, people are really going to have to make some noise to get those bankruptcy laws rolled back.

[banca rotta]

The only thing I wanted to add to these excellent comments is that it seems like we are truly at the beginning of the blood flowing for consumers. I think 2009 is going to look like child's play when we really get into 2010. Plus, people are really going to have to make some noise to get those bankruptcy laws rolled back.

No need for this. Between the hyperinflation, higher taxes, higher healthcare costs and higher unemployment more and more people will pass the means test.

The people should be more focused on forcing govt to prevent bk in the first place by job creation and less costly govt programs, but it doesn't look like this will happen anytime soon.

Also I don't want the govt to actually create jobs since that's what they are doing by growing themselves. I want them to create incentives to bring private sector jobs back NOW!!!

[Faust]

The only jobs possible are public works jobs, just like during the depression. The sooner the gov gets started on that the sooner people can start earning a paycheck. Until that happens nothing will get better in the labor market.

http://cohort11.americanobserver.net/latoyaegwuekwe/multimediafinal.html

Here's some more stats:

http://data.bls.gov/map/servlet/map.servlet.MapToolServlet?datatype=unemployment&year=2009&period=M11&survey=la&map=state&seasonal=s

[frogger]

Don't worry about the money. The printing presses are running 24/7. There's going to be plenty of money in the future, it just won't be worth much........

[banca rotta]

The only jobs possible are public works jobs, just like during the depression. The sooner the gov gets started on that the sooner people can start earning a paycheck. Until that happens nothing will get better in the labor market.

http://cohort11.americanobserver.net/latoyaegwuekwe/multimediafinal.html

Here's some more stats:

http://data.bls.gov/map/servlet/map....ate&seasonal=s

I thought this too until I researched it further and found that the depression didn't end until AFTER WW2. None of those public works projects did anything major.

Today is nothing like the 30's depression in anyway. Their money (until 1933) was backed by gold and silver, so the fed couldn't print as much as today just as Frogger mentions.

They also had no credit cards, student loans, HELOCs, ARMs and were the worlds largest creditors at that time. Oh and don't forget the commercial real estate coming collapse and all the bankrupt states like calf.

Today is nothing like then in anyway.

Until we promote protectionism and build in America (and I mean the USA not North America such as Mexico or Canada) there is no fixing this problem.

You might see some temporary "good news" until the stimulas runs out then it's back to the dumps again.