The Financial Hammer is falling .... [View All]

[Blackhatjack]

CNN reported earlier today that home foreclosures are skyrocketing in major cities across the country. One in particular, Atlanta, showed 1 in 70 home loans were being foreclosed.

Add to this the following: the Federal Reserve is printing money and dumping it into the markets at an unprecedented rate, savings by individuals is almost non-existent, personal debt in this country is at an insanely high amount, jobs are being laid off left and right along with salaries and benefits being stripped of jobs that remain.

The new bankruptcy bill means people must continue to pay credit card holders for at least 3 yrs if they file. Credit card companies have completely changed the terms of debt held by most Americans at the time the debt was incurred --disputes must be arbitrated and courts are closed to cardholders, credit card companies can unilaterally increase the interest rates to default levels(sometimes over 30%) if you miss making a payment on time to ANY other creditor, or if THEY believe you are no longer "credit worthy".

All of these variable rate mortgages and interest only loans are ratcheting up monthly payments, and capital available for lending is drying up in this country since the return on investment is higher outside the country.

The banks, credit card issuers, and mortgage companies saw all of this coming long before they got the new bankruptcy law passed, and began putting aside huge reserves to cover defaults and foreclosures.

If you have been unaware of all these events, you will learn shortly what the "financial hammer" means for most middle class and working class Americans.

One bright spot in all of this, the richest 1% will not lose anything, rather they will pick up assets for pennies on the dollar just like Mr. Potter in "Its a Wonderful Life." Feel better?