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Strategies & Market Trends : Waiting for the big Kahuna -- Ignore unavailable to you. Want to Upgrade?

To: Joseph G. who wrote (9356)	11/8/1997 8:52:00 PM
From: Dwight E. Karlsen	Respond to of 94695

Joe, I imagine the cc companies are keeping watch on the pertinent info, and hopefully the biggest cc companies will tire of having to write off losses, and become a little more cautious when thinking of allowing bad credit/welfare cases to get a credit card. I figure the companies you mentioned will take action soon enough. At worst they could just take a big one-time charge, and then reform themselves. They obviously do keep track of credit card payment delinquency rates, so at some point it seems they will decide it's more profitable to be less generous when granting big credit lines to people with a shaky history. DK

To: Joseph G. who wrote (9356)	11/8/1997 9:01:00 PM
From: Tommaso	Read Replies (4) \| Respond to of 94695

I wish I could disagree with you, but I think these banks will be treated like people that build expensive vacation houses in hurricane alley and get flood insurance from the government. Also, when big banks fold the officers generally get out with money and honor. They are treated like great patriotic generals who happened to suffer an unfortunate setback. Our local CEO of a failed savings and loan is now in charge of an enormous charitable trust because of his supposed acumen. Are they supporting poor people? Artists? City parks and recreation? Music festivals? Oh no! They are "training leaders." And the CEO who ruined his own savings and loan with bad loans is drawing a huge salary to oversee the distribution of wealth accumulated by a genuine pioneer businessman who started huge insurance and broadcasting entities. Here's government welfare on a truly enormous scale. I really am afraid that when our present market bubble pops there will be pressure to provide restitution for ill-advised investments in mutual funds.