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To: William JH who wrote (11949)	5/20/1998 11:09:00 AM
From: Enigma	Read Replies (3) \| Respond to of 116819

C.I.B.C./derivatives - can't find that posting - can someone point me towards it. Thanks! Re: the credit card purchase William - wasn't the money created by the transaction, and then cancelled by the default? E

To: William JH who wrote (11949)	5/26/1998 2:13:00 AM
From: Pete Young	Respond to of 116819

Re: "historically high default rate n credit cards." I have a VISA issued by a credit union in a small town in the Mojave Desert in Cal. They recently sent out a mailing to say they were raising the interest rate to 10.9% from 9.9% due to the large number of folks who were declaring bankruptcy and not paying off their cards. They also now offer debt counseling to members free, something new. My question: When a person doesn't pay their credit card bills for purchases made, aren't they creating paper money from nothing? Regards, WJH William, I don't think so. The VISA issuer has to pay for the merchadise/services purchased almost instantly, correct? I'm familiar with the idea of checking accounts "creating" money because of the "float" between the time services are rendered/goods purchased and actual cashing/crediting of the check involved. Credit cards, like debit cards would seem to have no float time. Perhaps I'm missing something? Yours, Pete