It looks like you're using an Ad Blocker.

Please white-list or disable AboveTopSecret.com in your ad-blocking tool.

Thank you.

 

Some features of ATS will be disabled while you continue to use an ad-blocker.

 

"Banks Want To Forgive Credit Card Debt - Government Says NO!"

page: 1
1

log in

join
share:

posted on Nov, 14 2008 @ 09:35 AM
link   
No bailout for you! But your tax dollars will pay for everyone else to be bailed out....

In the context of personal responsibility, this plan would be controversial to say the least, but hell - everyone is getting a free ride these days so there really is no moral high ground.

consumerist.com...

news.yahoo.com...


WASHINGTON – Federal bank regulators have rejected a request by banks and consumer advocates for a program to let lenders forgive huge portions of credit card debt.

The Office of the Comptroller of the Currency rejected the request for a special program that would allow as much as 40 percent of credit card debt to be forgiven for consumers who don't qualify for existing repayment plans.

An unusual alliance of financial industry interests and consumer advocates, represented by the Financial Services Roundtable and the Consumer Federation of America, made the request to the Treasury Department agency on Oct. 29. It demonstrated the urgency of the situation in a deepening economic crisis: consumers — even those with strong credit records — defaulting at high levels on their credit cards, while banks battered by the credit crisis bleed tens of billions from the losses.

An agency official said the government objects to allowing banks to defer losses for several years on the forgiven debt, as would occur in accounting by lenders under the special program.

The agency "does not consider any plan that defers the timely recognition of loss as prudent, and any such proposal cannot be viewed favorably by us," Timothy Long, senior deputy comptroller for bank supervision policy, said in a letter to the two groups dated Monday and made public Wednesday.



posted on Nov, 14 2008 @ 09:41 AM
link   
It's pretty ridiculous.

They want to keep everyone in line and the only way to do that is to keep you working to pay off debt based on worthless currency.

No get out of jail free card for the peons.



[edit on 14-11-2008 by warrenb]



posted on Nov, 14 2008 @ 09:53 AM
link   
reply to post by warrenb
 


That's a really good point...

Also, a credit card bailout for consumers would seem to perpetuate our greedy consumer lifestyle as I am sure many people would just spend the money they would normally use to pay their credit card bills.

They do want us to spend right? I mean that's what George asked us to do after 9/11. Seems wrong now doesn't it?

[edit on 14/11/2008 by kosmicjack]



posted on Nov, 14 2008 @ 10:36 AM
link   
reply to post by kosmicjack
 


I think banks have more to gain by "forgiving debt" then consumers on a spending binge. They realise they stand to lose a substantial portion of funds so why not declare a huge loss and get a big tax break rather than deffering portions to the future?

I am not a tax attorney but this seems very likely to me. The people that have their credit readjusted have very little to gain and normally banks don't give money away unless they benefit.



posted on Nov, 14 2008 @ 11:29 AM
link   
Yes, I agree, they stand to gain moreso by writing off these debts today vs waiting for the dollar to devalue even further over time which would only minimize the future worth of these debts as the inflation rate weakens the dollar.
It also might imply that they are fully aware of what the future holds for the US
dollar.



posted on Nov, 15 2008 @ 08:30 AM
link   
So so true,

Want an real economic stimulus package for the middle / low class...

#1 - Flat 2% rate mortgage refinance on all single family primary residences with a special $100 closing cost fee. (Line em up!)

#2 - Debt forgiveness... maybe, but a 5% interest cap on all credit cards and current high interest loans would be a good start.

#3 - 1 year of new home sales at 2% mortgage if "income approved" to avoid another mortgage crisis and kick home sales and construction into high gear.

Hell, why not, better than giving the parasites free money to give themselves bigger executive bonuses and host elaborate parties.



posted on Nov, 16 2008 @ 06:01 AM
link   
Yet another reason why the 'bailout' was a bad idea - now that the government has a direct stake in the industry, its opinions are more than just suggestions.

Personally I think interest rates should have a cap down in the single digits. And there's at least one good idea we can all agree on in the old testament - debts forgiven every seven years!



posted on Nov, 16 2008 @ 06:17 AM
link   

Originally posted by nh_ee


Yes, I agree, they stand to gain moreso by writing off these debts today vs waiting for the dollar to devalue even further over time which would only minimize the future worth of these debts as the inflation rate weakens the dollar.
It also might imply that they are fully aware of what the future holds for the US
dollar.


i totally agree with what you say...the bankers know that the dollar will inflate in the coming years, and want to get the biggest tax break on this years books.




top topics



 
1

log in

join