ARE THEY GOING TO BUY BAD CREDIT CARD DEBT????

[Junkdrawer]

Sorry to shout, but this is a BIG question.

Because if they do, forget about getting the $700 billion back.

[tekisui]

1. They are going to buy bad debt with debt. And put it on us

as inflation. Have fun!

[DefenseLawyer]

2. There are going to buy real estate derivatives

and credit default swap bullshit and all kinds of paper that isn't worth the ink used to print it.

[finecraft]

3. Yep. Not only card debt but also

student loan debt, consumer loan (auto, furniture, etc) debt, and I guess any other sort of debt they can find. I heard Paulson say this yesterday during the Senate committee hearings.

[Junkdrawer]

5. I hear Dodd wants to do the same...

I want to know:
Is it debt from bankruptcies?
Is it debt from borrowers who have been missing payments?

We have a HUGE credit card debt bubble NO ONE is talking about. And this debt has NO assets backing it up. The purest form of toxic sludge.

[moriah]

17. Yeah, and most of it HASN'T been refinanced into "secured" debt like HELOCs.

I currently put a little bit of money into peer-to-peer lending.

I absolutely refuse to loan for any person who seems to be suggesting at all that they want to convert secured to unsecured debt, or are wanting to borrow from me for things that are normally secured debt. No "just need $500 for a car", no "we need to repair our roof"....

I generally loan on things like "Help us get out of our payday loans!"

[guruoo]

7. Now, now, we musn't leave out the payday- title loan cabal...

'just one last dip in the trough on our way out the door'

[avaistheone1]

11. Gee and just what assets do we get in exhange for taking on bad auto loans,

defaulted credit cards, and bad student loans,etc.

[Junkdrawer]

13. Commemorative Wall Plaques???

"The Franklin Mint now offers fine Retired Debt Wall Plaques as a remembrance of the Greatest Scam in American History..."

[avaistheone1]

16. roflmao I think you need to get the word Patriotic in there.

"Patriotic" Retired Debt Wall Plaque with free flag pin and ginsu knives.

Bwah hahahahah!!

[radfringe]

19. now how much will you pay?

wait wait don't answer! if you order in the next 15 minutes, we'll send you the bills for the Iraq War and Occupation from the past 5 years!!!

[salin]

4. Two days ago I got an offer for a loan for 5K

yesterday I got a refi ad.

On the first - I have that in my account - why the h&ll would I borrow it, and on the second I own outright - why would I attach more debt? But the bigger point is --- I live in a transitional neighborhood and am being targetted by predatory lending schemes... (though I am, for now, situationally immune to the attempted hooks) So the predatory practices are going on - unchecked. Bail Out? NO WAY unless it is accompanied by very strong regulation. Otherwise the game on the taxpayers is still on.

[Junkdrawer]

6. Shit like that is why the Subprime crisis is the largest drain on poor....

people's wealth in history.

:mad:

[salin]

9. I have lived in my neighborhood for the past 4+ years

and it has been surreal. I live here because I was able to buy outright - and wanted to drive my monthly costs down. Empty homes, too many to count, but regular mail ads to refi with NO information needed ("instant approval") for 1.5 times the value of the home (and 2-3x what I paid for the home because I bargained down a foreclosure because I used my savings to buy outright.) While I am no longer a part of the "working poor" - I live here and receive/experience alot of the scams geared towards the working poor. This is indeed an era of schemed "trickleup". I don't live with the folks who overborrowed for mcmansions. I work with folks living at the edge of their means, and live in very modest homes (most under 50K). And the attempts to exploit financially - at a time where money is even tighter due to sky rocketing energy/fuel and thus basic goods costs.... the temptation to be drawn into these schemes (without realizing they are schemes) is heightened. :cry:

[Junkdrawer]

10. Here's some links with facts and figures:

http://www.democracynow.org/2008/1/17/report_subprime_mortgage_crisis_causing_african

http://www.faireconomy.org/issues/racial_wealth_divide/foreclosed_state_of_the_dream_2008_0

http://www.responsiblelending.org/issues/mortgage/research/subprime-spillover.html

[Junkdrawer]

8. Here's the latest numbers..over 700 Billion in credit card debt....

Interesting coincidence on that $700 billion figure, huh?

PDF Here:

http://www.americanprogress.org/issues/2008/02/pdf/house_of_cards.pdf

[finecraft]

12. Also, it is my understanding that the debt buy will be offered

not to just those institutions "in trouble", but also extended to all banks (including community banks) so everyone has the "opportunity to participate", quoting Paulson today. He thinks the number of "participants", should be around 1,000 or more to make the program work at it's most efficient level. (Insert throwing up sounds from me here). Being both a mortgage lender, as well an an FDIC bank auditor and liquidator in my life, this whole program makes my skin crawl on so many levels.

[FarCenter]

14. The interest rates on credit card debt make the Mafia blush

28% -- that's not interest; that's "vigorish".

Cut them up, or pay them off.

[Sebastian Doyle]

15. Fuck that shit.

If that's what this is all about, or even PART of the equation, pull the plug on that shit right now. The more predatory the nature of the "financial entity", the less likely they should be of getting OUR money.

[Junkdrawer]

18. "Student, car debt quietly added to bailout plan"...

In the dark of night over the weekend when most people were snoozing, the Treasury dramatically expanded its bailout plan to include buying student loans, car loans, credit card debt and any other "troubled" assets held by banks.

The changes, which were included in draft language that also opened the bailout program to foreign banks with extensive loan operations in the United States, potentially added tens of billions of dollars to the cost of the program.

Although it was a major addition to what was already the nation's largest-ever bailout, it did not become part of the debate between Democrats and the Treasury over details of the program. A Monday counterproposal by Senate Banking Committee Chairman Christopher J. Dodd included such consumer loans as well as mortgages, just as the Treasury's draft did Saturday night.

"The costs of the bailout will be significantly higher than originally considered or acknowledged," said Joshua Rosner, managing director of Graham Fisher & Co., who charged that the Treasury and Federal Reserve have not been "forthright" about the ultimate cost to the public. The plan gives Treasury the discretion to buy the non-mortgage loans and securities in consultation with the Fed.

...



http://www.washtimes.com/news/2008/sep/23/student-car-debt-quietly-added/