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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: ild who wrote (25454)	1/28/2005 1:50:02 AM
From: mishedlo	Read Replies (2) \| Respond to of 110194

Then how come that most financial companies have been reporting improving credit quality of consumers. 1) skip-a-pay 2) HELOCs 3) cash out refis 4) lower minimum pays 5) extended credit 6) Things always look good at the top ggg

To: ild who wrote (25454)	1/28/2005 6:20:27 AM
From: Crimson Ghost	Respond to of 110194

Just sheer greed on the part of financial companies. Credit card companies now "earn" a hefty portion of their profits (something like a third I think) from these fees

To: ild who wrote (25454)	1/28/2005 8:11:46 AM
From: KyrosL	Read Replies (1) \| Respond to of 110194

It all depends on how you define "credit quality". If you owe no money and have a bunch of dormant credit cards, your credit score may actually be lower than somebody with a hefty mortgage and a bunch of active credit cards who has not missed payments for a number of years. As for bankruptcies, there has been a growing tendency to negotiate a new schedule of payments with those that can't make mortgage payments (the main reason for bankruptcy), rather than force foreclosure. For example, convert the mortgage into interest only for a number of years, etc.