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December 2, 2008 at 11:00:39
Promoted to Headline (H3) on 12/2/08: 
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The year long Bush Recession, which Bush still does not acknowledge, has now become a rapidly accelerating Depression fueled by a credit card crisis which is now a reality. Credit card companies are pulling back credit lines by close to 50% and consumers will soon stop shopping as the Retail economy sinks into a severe depression. Derivatives are next : Allen L Roland The eroding stock market is just beginning to absorb the full impact of our economic nightmare and the current credit card crisis. On June 30th, 2008 I wrote a column HUGE CREDIT CARD CRISIS NEXT FOR AMERICA in which I said that many Americans are living off their credit cards but be forewarned ~ that bubble is about to burst as more Americans are using high-interest credit card cash to pay at least part of their mortgages. Overall U.S. credit card debt grew by 435% from $211 billion in 2002 to approximately $915 billion year-end 2007. I also shared that the value of credit card accounts at least 30 days late was up 26% from the previous year, to $17.3 billion. Serious delinquencies among some of the biggest lenders rose by 50 percent or more in the value of accounts that were at least 90 days delinquent. The credit card is the second key source of consumer liquidity, the first being jobs, the Oppenheimer & Co analyst noted. "In other words, we expect available consumer liquidity in the form or credit-card lines to decline by 45 percent." Bank of America, Citigroup and JPMorgan Chase represent over half of the estimated U.S. credit card outstandings as of Sept. 30, and each company has discussed reducing card exposure or slowing growth, Whitney said. A consolidated U.S. lending market that is pulling back on credit is also posing a risk to the overall consumer liquidity, Whitney said. Mortgages and credit cards are now dominated by five players who are all pulling back liquidity, making reductions in consumer liquidity seem unavoidable, she said. "...We are now beginning to see evidence of broad-based declines in overall consumer liquidity." She also said credit lines to consumers through home equity and credit cards had been cut back from the second-quarter levels. "Pulling credit when job losses are increasing by over 50 percent year-over-year in most key states is a dangerous and unprecedented combination, in our view," the analyst said. http://www.cnbc.com/id/27993643 Remember, the credit card crisis is just the second leg of a three stage collapse of the economy ~ the third stage being the 900 pound guerilla in the room, which no one wants to talk about, the 650 trillion dollar unregulated Derivative market. See ~ UNSPOKEN CAUSE OF MARKET COLLAPSE IS DERIVATIVE TRADING http://blogs.salon.com/0002255/2008/10/13.html Of course, along with the credit card crisis and a dramatic pullback in consumer spending ~ the next round of foreclosures will be Retail ~ for Malls from Michigan to Georgia are already entering foreclosure, commercial victims of the same events poisoning the housing and credit markets. http://www.cbsnews.com/stories/2008/11/28/business/main4637008.shtml Happy Holidays ! Allen L Roland is a practicing psychotherapist, author and lecturer who also shares a daily political and social commentary on his weblog and website allenroland.com He also guest hosts a monthly national radio show TRUTHTALK 
The U.S. credit-card industry may pull back well over $2 trillion of lines over the next 18 months due to risk aversion and regulatory changes, leading to sharp declines in consumer spending, prominent banking analyst Meredith Whitney said. 
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Spot On
Allan, I expect more financial calamity to unfold exactly as you describe it. More bad news: our industrial agriculture model is also in collapse. Pilgrim's Pride, the largest poultry producer in the US, filed Chapter 11 yesterday. Fertilizers as commodities are up between 300 and 600 percent from 2006...and Monsanto seed cannot be saved for planting as it's sterile (and not edible anyway except by cows and being processed into high fructose corn syrup)...the monocropped miles in Iowa are dead without being chemicaled into production, it's over. Active military unit on US soil currently undergoing crowd control training exercises. Wonder why? by Susan Guest (3 articles, 0 quicklinks, 0 diaries, 91 comments [1 recommended, 0 rejected]) on Tuesday, Dec 2, 2008 at 1:41:24 PM  (0+)
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The Derivative Tsunami
You are absolutely correct!!! We are at the beginning of the worst economic collapse in history. It will lead ultimately to the largest world war in history. This all fits in with the plan of the most wealthy elites in the world to rid the planet of about 2 billion people. Hence Bush and his buddies are conducting a massive all-out theft of public money by printing up and doling out around $5 trillion to their friends and famlies. The banks and AIG are using the funds to pay off credit default swaps. These CDS's are not tracked and we do not know who is getting the money but one can only guess that the Bush folks and their corporate friends bought up CDS's betting on the collapse. Now they need to give the sellers of these CDS's the money to pay them off. After they pay themselves off for their bets on the economic collapse there will be nothing left for us to use to stave off a total financial and economic tsunami the likes of which we have never seem and which will make the Great Depression look like a tea party. The word 'depression' just won't suffice. Whatever the world looks like now, after this tsunami has hit and passed the world will never be the same and will look utterly different than it does now. Everything we know will be changed permanently. Only the largest and wealthiest corporations and individuals will survive financially. They will be the new aristocracy with private armies and they will control every powerful government in the world. Get ready for serfdom like the dark ages. by jeff rock (10 articles, 1 quicklinks, 8 diaries, 187 comments [68 recommended, 0 rejected]) on Tuesday, Dec 2, 2008 at 11:45:33 PM (0+)
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Boom!
I don't get it. This is all wrong. The Republicans said deregulation and tax cuts for the rich would make th economy boom. They got deregulation and tax cuts up the wazzoo. So--according to Republican principles--the economy should be booming right now. What went wrong? Must be the Demoicrats' fault! We're Celebrating Your Demise! by Perry Logan (0 articles, 0 quicklinks, 0 diaries, 558 comments [74 recommended, 3 rejected]) on Wednesday, Dec 3, 2008 at 5:16:34 AM (0+)
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Upside down credit world
How come I'm still getting "offers I can't refuse" from my credit card companies for new accounts or super-duper balance transfer offers? In the middle of all this topsey-turveyness, those same credit card companies are sending me dire warning letters about everything you mentioned. Go figure. by Sandy Sand (198 articles, 0 quicklinks, 227 diaries, 1548 comments [2 recommended, 0 rejected]) on Wednesday, Dec 3, 2008 at 8:49:37 AM (0+)
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The US Treasury can print money 'out of thin air'
The public is under the misapprehension that preserving elite private banks is essential to keeping credit flowing in the economy, which is why there is such little outrage about the$7.8 trillion that has been stolen so far. In fact, the treasury can print up money and spend it debt free into the economy, or lend it at 100% reserve into the economy. This is what Lincoln did in the Civil War to avoid the 36% interest the bankers were offering. This idea is discussed clearly and at length in Ellen Hodgson Brown's Web of Debt http://webofdebt.com by wraft (0 articles, 0 quicklinks, 0 diaries, 54 comments) on Wednesday, Dec 3, 2008 at 9:09:38 AM (0+)
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theTroops in DC
I have wondered what all those troops moved to the DC area were doing.I belong to a Survivalist group..They tell you what supplies you need to last a month or a year if supplies are cut off..I bought a solar cooker and felt foolish now I feel wise..I understand the house of cards set up w housing ,but I felt ill when I learned how Moodys and S&P changed the ratings of bundled housing deals from CCC to AAA so pension funds would be able to invest in this house of cards..Obama is putting in power people who did this..I had better get my garden going!!!I really do not know what derivatives are... by mcmahon (0 articles, 0 quicklinks, 0 diaries, 17 comments) on Thursday, Dec 4, 2008 at 11:16:39 AM (0+)
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