Run tiger, run!:
[Via Bad Astronomy]
I loves me some optical illusions. I’ve seen so many I can’t remember them all. But this one may be just about the coolest I’ve seen on teh intertoobz. If you play with it for a minute or two you’ll see how it works, and at what speed to drag …
Video: How Credit Cards Become Bonds [Securitization]:
[Via Consumerist]
We’ve heard lots about how mortgages get turned into tradeable securities, but they’re not the only thing. No no no, there was far too much Chinese money not able to earn anything on T-bonds for us…
[More]
Really nice explanation of how credit cards become securities. This will be crashing sometime soon also. Because the credit card companies are not responsible for the debt anymore. If someone defaults, it is not on their books, it is on the funds that bought the debt.
No wonder credit card companies don;t care whether anyone pays off the card. They move the debt onto others, just as banks moved the mortgages. So now, if those hedge funds tried to remove risk, they probably dabbled in credit default swaps and really messed themselves up.
So, as people start defaulting on their credit cards, the same sort of deleveraging process seen with mortgages will begin, causing some more economic problems.
There are about $14 trillion in outstanding mortgages in the US. Outstanding consumer credit is about $3 trillion with debt about $1 trillion. So, maybe not as bad as mortgages but it may be nasty anyway.
That might explain this:
[Via AMERICAblog: A great nation deserves the truth]
From reader Careyana:
I received a letter from CitiBank today informing me that they were updating my card agreement. They were modifying my Fixed APR of 7.99% to 14.99%. I was given the option to opt out of the changes which would then carry my current agreement until the card expires (7/09).
So I called Citi and got “Amit” on the phone and asked why was there a change to my account, as I’ve been a customer for over 4 years and I’ve NEVER had a late payment and ALWAYS pay over the minimum. Amit starts, “Well, due to the current economic situation…” I interrupted him immediately. “So what you’re saying is that I’m being penalized because I’m a good customer?” He didn’t really have a good scripted answer to that and kept repeating the “due to current economic situation…” mantra.
I’m curious how many more of your readers out there are receiving similar letters from their banks.
Almost doubling the interest rate. Even for good customers. I guess this is supposed to hedge against increasing defaults.
Technorati Tags: Economy
All Airports Should Have A Recombobulation Area Like The One In Milwaukee [Recombobulation]:
[Via Consumerist]
Today is a travel day for millions of Americans, so we thought we’d focus on the positive. Here’s a good idea that needs to catch on. Milwaukee’s Mitchell International Airport has a sign after their TSA check point that reads “Recombobulation Area.”
This is a very nice idea and one all the airports should have.
Technorati Tags: General
