The answer is YES.
I am not sure where the new bull market takes us…it is a bull market, but whatever new wealth I do acquire will be spent on Visa and now maybe Mastercard ( Long $V). The bank will be named shortly because I won’t give Capital One the time of day, let alone a nickle. Hopefully one of the local variety in a start-up mode with friends. Otherwise I want a Goldman Sachs card…whose slogan – ‘ Now You TOO can tell everyone Fuck off I’m with Goldman’ – is catchy!
I am also considering cash and debit the next few years.
Yesterday I got a few emails from AMEX cutting my card exposures to $7,900 and $2,500. For the last 25 years, I have spent millions of dollars using AMEX. I have gotten crooked looks from vendors who hate them, but whatever, I was part of the club. I never bit on Platinum, Black, Plutonium, Plum or the other fancy offers. I just have been loyal and gold, sometimes green.
To be fair, the last year of travel and new businesses and multiple accounts has caused the TARP eaters upstairs some grief. I am never on time and always a week or two late coordinating cash and calling in payments from the road. The people on the phone have always been helpful. BUT, the good people upstiars of TARPexpress/ AmericanFED felt that I am no longer worthy of their trust.
To the new credit lines I first would like to say thank-you American Express. Though I have never been happier to be alive, wealthier, willing to take risk and continue spending, you are looking out for me. You believe I must spend less. I agree. I will spend in fact ZERO with you. I will take my miles before I leave.
But lets get back to the title of the post…Does my American Express story matter to the recovery?
YES.
As Bernake squawks on TV that the recession is over and the market zooms to 10,000 and likely above, there is no real wealth or recovery wealth being created. Their is a shitpile of hope factored in and a recent history book of good data surrounding the pumping of global liquidity, but the underlying behavior of every aspect of the economy save mobile and the inevitable comeback in the surviving banks is pathetic.
We should be spending less, we should be conserving more, we had a 20 year gift of credit and leverage.
Don’t be a sucker…take the credit squeezes put on you and shrink to fit the new realities. We are a long way from clear sailing for the great majority.
If I am wrong, you can still get wealthy without the financial leverage of credit cards.
Howard – Thanks for the share – I had a similar experience with Citi Mastercard recently – I’d say it’s industrywide – credit line slashed after 15 years of service (with a clean record) – APR up 50% – I could care less about the APR as I don’t use the float – maybe this is why they don’t want me as a customer.
Howard – Thanks for the share – I had a similar experience with Citi Mastercard recently – I’d say it’s industrywide – credit line slashed after 15 years of service (with a clean record) – APR up 50% – I could care less about the APR as I don’t use the float – maybe this is why they don’t want me as a customer.
Consider dumping Amex a birthday gift to yourself……. good timing anyway. :)
Consider dumping Amex a birthday gift to yourself……. good timing anyway. :)
Sad to say that you are the dumb one, but hey everyone is entitled to there own opinion! I wonder how long your new credit providers will tolerate you late payment practices. I am surprised that you lasted as long as you did with Amex. The good news is that Amex dosen't actually need dimwits like you as they make the majority of their money off high spenders or which I am sure you fall way short of!
Howard – Thanks for the share – I had a similar experience with Citi Mastercard recently – I'd say it's industrywide – credit line slashed after 15 years of service (with a clean record) – APR up 50% – I could care less about the APR as I don't use the float – maybe this is why they don't want me as a customer.
Thx. I agree and for now think I just deserve it and will chill spending but dumb move by amex
Consider dumping Amex a birthday gift to yourself……. good timing anyway. :)
Unless I am wrong and often am, people will have to curb spendfing. I don't have to but now must. I feel good about it.
Food, shelter, and water and liquidity are king
thats a worse story than mine. fuck em and more people need to say it too.
Amex lost my business recently as well when they raised my rate from 7.99% to 15.24 % . I never have used more than 10% of my available credit and have a credit score above 800 so I basically told them to Peace the fuu out! TARPexpress is what pisses me off the most. I do think the American Public needs to deleverage a shit load more so maybe these companies pissing on their customers is a good thing.
I don't see much change in the market besides sentiment and this scares me the most. I don't want to be a perma bear but I am still not convinced. I'll invest in myself before touching this market again.
I've said it before and I will say it again. The process of consumer deleveraging is on. People will have less access to cheap money and they will save more. Peer to peer lending will thrive and it will be healthy for the economy, because the cost of capital there will be defined by supply and demand and not by what the government thinks.
Howard, I have a stellar FICO and never make late payments and all my cards except my Chase *so far* have raised rates from low single digits / low teens to >23% in the past 90 days
Boo Yah Howard.
Just imagine what life must be like for the slackers who don't pay their bills… wait a second, they are experiencing the same thing.
Can't wait to see how the “consumer is back” theory works when we start to see a bevy of bankruptcies in 2010+ due to people who have been used to having 10-12% rates now must deal with 23-29%.
Howard, I couldn't agree more. Amex used to be a fantastic company, with fantastic customer service. If you ever had a problem, Amex went out of their way to make sure you were happy at the end of the day. Whatever is going on inside the company now though is pathetic. Ive been a loyal card holder for more than a decade, currently have 3 cards, and have put millions of dollars on these cards for the startups ive run (and my personal life) during that period. And I can count the number of times ive paid any bill to them late on one finger. Yet last week when i went to create a card for a new business (i.e. to give them more business), they said “policy prevents us from allowing any individual from having more than 3 cards. No exceptions.”. I pointed out my history, personal and business credit, and the vast array of business ive brought them, to which they replied that this was one of many policies that have recently been implemented, and there is no discussion. They refused to transfer me to a manager.
When a company moves from clear and personalized service, to “scared shitless” one size fits all rules, its a great bet the management is lost. Sad to watch.
simple but likely true.
In 2006, Bank of America bumped my credit limit to $14,000 while I was still enrolled in college and had no documented income except allowance. I asked them to lower it to $2500. The recovery is on when they offer to raise my limit again…
Amex lost my business recently as well when they raised my rate from 7.99% to 15.24 % . I never have used more than 10% of my available credit and have a credit score above 800 so I basically told them to Peace the fuu out! TARPexpress is what pisses me off the most. I do think the American Public needs to deleverage a shit load more so maybe these companies pissing on their customers is a good thing.
I don’t see much change in the market besides sentiment and this scares me the most. I don’t want to be a perma bear but I am still not convinced. I’ll invest in myself before touching this market again.
Thx. I agree and for now think I just deserve it and will chill spending but dumb move by amex
Thx. I agree and for now think I just deserve it and will chill spending but dumb move by amex
Amex lost my business recently as well when they raised my rate from 7.99% to 15.24 % . I never have used more than 10% of my available credit and have a credit score above 800 so I basically told them to Peace the fuu out! TARPexpress is what pisses me off the most. I do think the American Public needs to deleverage a shit load more so maybe these companies pissing on their customers is a good thing.
I don’t see much change in the market besides sentiment and this scares me the most. I don’t want to be a perma bear but I am still not convinced. I’ll invest in myself before touching this market again.
I’ve said it before and I will say it again. The process of consumer deleveraging is on. People will have less access to cheap money and they will save more. Peer to peer lending will thrive and it will be healthy for the economy, because the cost of capital there will be defined by supply and demand and not by what the government thinks.
I’ve said it before and I will say it again. The process of consumer deleveraging is on. People will have less access to cheap money and they will save more. Peer to peer lending will thrive and it will be healthy for the economy, because the cost of capital there will be defined by supply and demand and not by what the government thinks.
Howard, I have a stellar FICO and never make late payments and all my cards except my Chase *so far* have raised rates from low single digits / low teens to >23% in the past 90 days
Boo Yah Howard.
Just imagine what life must be like for the slackers who don’t pay their bills… wait a second, they are experiencing the same thing.
Can’t wait to see how the “consumer is back” theory works when we start to see a bevy of bankruptcies in 2010+ due to people who have been used to having 10-12% rates now must deal with 23-29%.
Unless I am wrong and often am, people will have to curb spendfing. I don’t have to but now must. I feel good about it.
Food, shelter, and water and liquidity are king
Unless I am wrong and often am, people will have to curb spendfing. I don’t have to but now must. I feel good about it.
Food, shelter, and water and liquidity are king
Howard, I have a stellar FICO and never make late payments and all my cards except my Chase *so far* have raised rates from low single digits / low teens to >23% in the past 90 days
Boo Yah Howard.
Just imagine what life must be like for the slackers who don’t pay their bills… wait a second, they are experiencing the same thing.
Can’t wait to see how the “consumer is back” theory works when we start to see a bevy of bankruptcies in 2010+ due to people who have been used to having 10-12% rates now must deal with 23-29%.
“I’ve never ever felt it was ‘us vs. them (the bankers)’ until this recession.”
At this point, one has to wonder if a person’s credit score is worth continuing to be honorable to businesses that aren’t honorable to you.
Its a great theory but not realistic.
We are truly in a catch 22
Its a great theory but not realistic.
We are truly in a catch 22
“I’ve never ever felt it was ‘us vs. them (the bankers)’ until this recession.”
At this point, one has to wonder if a person’s credit score is worth continuing to be honorable to businesses that aren’t honorable to you.
Howard, I couldn’t agree more. Amex used to be a fantastic company, with fantastic customer service. If you ever had a problem, Amex went out of their way to make sure you were happy at the end of the day. Whatever is going on inside the company now though is pathetic. Ive been a loyal card holder for more than a decade, currently have 3 cards, and have put millions of dollars on these cards for the startups ive run (and my personal life) during that period. And I can count the number of times ive paid any bill to them late on one finger. Yet last week when i went to create a card for a new business (i.e. to give them more business), they said “policy prevents us from allowing any individual from having more than 3 cards. No exceptions.”. I pointed out my history, personal and business credit, and the vast array of business ive brought them, to which they replied that this was one of many policies that have recently been implemented, and there is no discussion. They refused to transfer me to a manager. When a company moves from clear and personalized service, to “scared shitless” one size fits all rules, its a great bet the management is lost. Sad to watch.
thats a worse story than mine. fuck em and more people need to say it too.
thats a worse story than mine. fuck em and more people need to say it too.
Howard, I couldn’t agree more. Amex used to be a fantastic company, with fantastic customer service. If you ever had a problem, Amex went out of their way to make sure you were happy at the end of the day. Whatever is going on inside the company now though is pathetic. Ive been a loyal card holder for more than a decade, currently have 3 cards, and have put millions of dollars on these cards for the startups ive run (and my personal life) during that period. And I can count the number of times ive paid any bill to them late on one finger. Yet last week when i went to create a card for a new business (i.e. to give them more business), they said “policy prevents us from allowing any individual from having more than 3 cards. No exceptions.”. I pointed out my history, personal and business credit, and the vast array of business ive brought them, to which they replied that this was one of many policies that have recently been implemented, and there is no discussion. They refused to transfer me to a manager. When a company moves from clear and personalized service, to “scared shitless” one size fits all rules, its a great bet the management is lost. Sad to watch.
Me too. Always blogged it that way too since 2005
“I've never ever felt it was 'us vs. them (the bankers)' until this recession.”
At this point, one has to wonder if a person's credit score is worth continuing to be honorable to businesses that aren't honorable to you.
I've never ever felt it was 'us vs. them (the bankers)' until this recession. Now I'm like f*** the bankers! even at Wells Fargo where my checking account is they are nickel and diming me for every bs little thing. I literally hate bankers now.
Its a great theory but not realistic.
We are truly in a catch 22
In 2006, Bank of America bumped my credit limit to $14,000 while I was still enrolled in college and had no documented income except allowance. I asked them to lower it to $2500. The recovery is on when they offer to raise my limit again…
simple but likely true.
simple but likely true.
In 2006, Bank of America bumped my credit limit to $14,000 while I was still enrolled in college and had no documented income except allowance. I asked them to lower it to $2500. The recovery is on when they offer to raise my limit again…
Wow. A great reminder of what happened.
We all lose from this except the banks.
Sent via BlackBerry from T-Mobile
I’ve never ever felt it was ‘us vs. them (the bankers)’ until this recession. Now I’m like f*** the bankers! even at Wells Fargo where my checking account is they are nickel and diming me for every bs little thing. I literally hate bankers now.
Me too. Always blogged it that way too since 2005
Me too. Always blogged it that way too since 2005
I’ve never ever felt it was ‘us vs. them (the bankers)’ until this recession. Now I’m like f*** the bankers! even at Wells Fargo where my checking account is they are nickel and diming me for every bs little thing. I literally hate bankers now.
Two years ago, BBO (Before Bank Bailout), in order to get thru a legal bill driven financial mess I was forced to use the entire credit line that BAC, the welfare momma formerly known as MBNA, happily “authorized”. When I started making on time but the minimum payments (and why DO they call them minimum payments?) they raised my APR to 24% so that for about a year, they collected 24% on $60k. When life returned to normal and I repaid the entire $35K balance on one card, the very next day they lowered my credit limit from $35k to $1k. Several weeks later when I repaid the balance on the other card, they lowered the credit limit from $30 to $10k. In other words, thank you very much for the thousands of dollars in interest and for paying your bill and not declaring bankruptcy when you probably could have, but now we think you are a bad risk. Phone calls got the $1k line of credit increased to $5K and the 24% reduced to 14% but even though I have not revolved a balance since, in July they increased my APR back to 24%.
The phone calls I had with them over the last several years made me hate them. I wish them the worst. I have this recurring fantasy that I HAD defaulted or declared bankruptcy. I mean would they have treated me any worse?
American Express who I only had a COSTCO account with (over the years have like all the others spent a fortune on other AMEX cards) and a credit limit of $2000 which was never maxed and only occasionally revolved, sent me a letter in January lowering the credit to $1000. A few months later, they closed the account entirely which I found out by trying to use it at COSTCO. When I called, thinking it was a mistake, they assured me gleefully that it was not.
So, today, although I still use my BAC cards (until the next kick in the face comes) I do it only when I have to and pay if off at the end of every month. The same thing I would be doing if they hadn't decided that THEY needed to manage my spending….I hate debt and except for the 2 years of financial hell, NEVER carried a balance and I have yet to have EVER missed a payment. But I will never carry an AMEX card again and if and when banks begin sending credit card offers again will ditch the BAC card without a backward glance.
Here's to the shrunken debtless new realities! We will all be better off.
Two years ago, BBO (Before Bank Bailout), in order to get thru a legal bill driven financial mess I was forced to use the entire credit line that BAC, the welfare momma formerly known as MBNA, happily “authorized”. When I started making on time but the minimum payments (and why DO they call them minimum payments?) they raised my APR to 24% so that for about a year, they collected 24% on $60k. When life returned to normal and I repaid the entire $35K balance on one card, the very next day they lowered my credit limit from $35k to $1k. Several weeks later when I repaid the balance on the other card, they lowered the credit limit from $30 to $10k. In other words, thank you very much for the thousands of dollars in interest and for paying your bill and not declaring bankruptcy when you probably could have, but now we think you are a bad risk. Phone calls got the $1k line of credit increased to $5K and the 24% reduced to 14% but even though I have not revolved a balance since, in July they increased my APR back to 24%.
The phone calls I had with them over the last several years made me hate them. I wish them the worst. I have this recurring fantasy that I HAD defaulted or declared bankruptcy. I mean would they have treated me any worse?
American Express who I only had a COSTCO account with (over the years have like all the others spent a fortune on other AMEX cards) and a credit limit of $2000 which was never maxed and only occasionally revolved, sent me a letter in January lowering the credit to $1000. A few months later, they closed the account entirely which I found out by trying to use it at COSTCO. When I called, thinking it was a mistake, they assured me gleefully that it was not.
So, today, although I still use my BAC cards (until the next kick in the face comes) I do it only when I have to and pay if off at the end of every month. The same thing I would be doing if they hadn’t decided that THEY needed to manage my spending….I hate debt and except for the 2 years of financial hell, NEVER carried a balance and I have yet to have EVER missed a payment. But I will never carry an AMEX card again and if and when banks begin sending credit card offers again will ditch the BAC card without a backward glance.
Here’s to the shrunken debtless new realities! We will all be better off.
Wow. A great reminder of what happened.
We all lose from this except the banks.
Sent via BlackBerry from T-Mobile
Wow. A great reminder of what happened.
We all lose from this except the banks.
Sent via BlackBerry from T-Mobile
Two years ago, BBO (Before Bank Bailout), in order to get thru a legal bill driven financial mess I was forced to use the entire credit line that BAC, the welfare momma formerly known as MBNA, happily “authorized”. When I started making on time but the minimum payments (and why DO they call them minimum payments?) they raised my APR to 24% so that for about a year, they collected 24% on $60k. When life returned to normal and I repaid the entire $35K balance on one card, the very next day they lowered my credit limit from $35k to $1k. Several weeks later when I repaid the balance on the other card, they lowered the credit limit from $30 to $10k. In other words, thank you very much for the thousands of dollars in interest and for paying your bill and not declaring bankruptcy when you probably could have, but now we think you are a bad risk. Phone calls got the $1k line of credit increased to $5K and the 24% reduced to 14% but even though I have not revolved a balance since, in July they increased my APR back to 24%.
The phone calls I had with them over the last several years made me hate them. I wish them the worst. I have this recurring fantasy that I HAD defaulted or declared bankruptcy. I mean would they have treated me any worse?
American Express who I only had a COSTCO account with (over the years have like all the others spent a fortune on other AMEX cards) and a credit limit of $2000 which was never maxed and only occasionally revolved, sent me a letter in January lowering the credit to $1000. A few months later, they closed the account entirely which I found out by trying to use it at COSTCO. When I called, thinking it was a mistake, they assured me gleefully that it was not.
So, today, although I still use my BAC cards (until the next kick in the face comes) I do it only when I have to and pay if off at the end of every month. The same thing I would be doing if they hadn’t decided that THEY needed to manage my spending….I hate debt and except for the 2 years of financial hell, NEVER carried a balance and I have yet to have EVER missed a payment. But I will never carry an AMEX card again and if and when banks begin sending credit card offers again will ditch the BAC card without a backward glance.
Here’s to the shrunken debtless new realities! We will all be better off.
This is absolutely true. I had $BAC and $C both ding my credit limits. I called them and advised them that their moves were more about their financial health than mine and they could put their cards somewhere warm and fuzzy. We have pulled way back on spending at a time where our income has gone up dramatically. Conspicuous conservation is the new black.
This is absolutely true. I had $BAC and $C both ding my credit limits. I called them and advised them that their moves were more about their financial health than mine and they could put their cards somewhere warm and fuzzy. We have pulled way back on spending at a time where our income has gone up dramatically. Conspicuous conservation is the new black.
This is absolutely true. I had $BAC and $C both ding my credit limits. I called them and advised them that their moves were more about their financial health than mine and they could put their cards somewhere warm and fuzzy. We have pulled way back on spending at a time where our income has gone up dramatically. Conspicuous conservation is the new black.
Oh Howard, CASH has always been so much better than credit. Everyone was laughing when I said buy the mighty AU at $300/oz. so now it is close to $1K – they will even redeem it in the local mall! LOL Credit cards suck – I never like(d) them, but their stocks usually perform well. My guess is the rally is coming to an end before long with a new set of mortgage resets (IMO).
Great post!.
Oh Howard, CASH has always been so much better than credit. Everyone was laughing when I said buy the mighty AU at $300/oz. so now it is close to $1K – they will even redeem it in the local mall! LOL Credit cards suck – I never like(d) them, but their stocks usually perform well. My guess is the rally is coming to an end before long with a new set of mortgage resets (IMO).
Great post!.
Oh Howard, CASH has always been so much better than credit. Everyone was laughing when I said buy the mighty AU at $300/oz. so now it is close to $1K – they will even redeem it in the local mall! LOL Credit cards suck – I never like(d) them, but their stocks usually perform well. My guess is the rally is coming to an end before long with a new set of mortgage resets (IMO).
Great post!.
Oh Howard, CASH has always been so much better than credit. Everyone was laughing when I said buy the mighty AU at $300/oz. so now it is close to $1K – they will even redeem it in the local mall! LOL Credit cards suck – I never like(d) them, but their stocks usually perform well. My guess is the rally is coming to an end before long with a new set of mortgage resets (IMO).
Great post!.