Share on Google Plus Share on Twitter Share on Facebook 2 Share on LinkedIn Share on PInterest Share on Fark! Share on Reddit Share on StumbleUpon Tell A Friend 1 (3 Shares)  
Printer Friendly Page Save As Favorite View Favorites View Article Stats   10 comments

Exclusive to OpEdNews:
OpEdNews Op Eds

THE BIG BANGA THEORY: Americans Ditch Credit Cards Stick It to Wall Street

By (about the author)     Permalink       (Page 1 of 4 pages)
Related Topic(s): ; ; ; ; ; ; , Add Tags Add to My Group(s)

Valuable 3   Must Read 2   Supported 2  
View Ratings | Rate It

opednews.com Headlined to H3 12/10/10

Become a Fan
  (34 fans)

THE BIG BANGA THEORY is the next battle in People versus Wall Street.

Americans are ditching credit cards and according to a report in this morning's The New York Times holiday shopping with plastic is at a 27 year low.  

Last month, president and chief executive officer of MasterCard Ajay Banga said, "I have declared war on cash.   I believe MasterCard will grow by growing against cash." (Source: The Economic Times.)

Though we may thank Mr. Banga for his recent candor, the most recent battle in the war between the banks and people has been raging since at least September of 2009.  


Big Banga Trio: Banga, Bernanke & Geithner by Chaz Valenza

Banks and credit card companies have made aircraft carriers full of money since creating plastic as a substitute for cash in the 1950's.   Plastic was sold as a "convenience" product/service at price that has always been hidden to the purchasers, but perhaps at a fair value. Prior the economic crash, credit card offers were just business, nothing personal.

Now, it's personal and it's war.   Since the too-big-to-fail financial corporations destroyed the economy, the public has also learned that broad categories of the same companies' consumer products are pernicious.   This has caused a degree of resentment among the American public (perhaps this is the understatement of the decade).

How's the war going?   You won't find reports from the front issued by Brian Williams.   After all, he works for General Electric a most profitable company in large part due to the financial products of GE Capital.   GE Capital also nearly brought its parent company to its knees with its exposure to toxic derivative "assets."

So, here's the body count you won't find anywhere else and it may surprise you:

In 2008 there were 176.8 million American "general use" credit cardholders (Amex, Visa, MasterCard, Discover).  

By the end of 2009, that same category of credit cardholders decreased 7.4% to 164.7 million.

Today, only about 156.7 million people are credit cardholders.

This past year 8 million Americans deserted credit cards.   They are no longer cardholders; that's right they don't have a one!   BTW, having 3.5 pieces of general use plastic is the average.

This is a stunning reversal for the financial services industry as cardholders grew by over 13% from 2000 through 2008.   (U.S. Census Bureau).  

The projections were that cardholder numbers would continue to increase by 8 million through 2009, not drop by 8 million.   (U.S. Census Bureau).  

By January 1, 2010 there were suppose to be 181 million American credit cardholders, now there are only about 156.7 million, a 15.3% decrease.  

Next Page  1  |  2  |  3  |  4

 

Chaz Valenza is writer and small business owner in New Jersey. He earned his MBA from New York University's Stern School of Business. His current feature film project is "Single Point Failure" an insider's account of how the Reagan Administration (more...)
 

Share on Google Plus Submit to Twitter Add this Page to Facebook! Share on LinkedIn Pin It! Add this Page to Fark! Submit to Reddit Submit to Stumble Upon

The views expressed in this article are the sole responsibility of the author and do not necessarily reflect those of this website or its editors.

Follow Me on Twitter

Contact Author Contact Editor View Authors' Articles

Most Popular Articles by this Author:     (View All Most Popular Articles by this Author)

America's 14 Most Ready to Riot Cities

It's Official: Gov Stats Shows the Middle Class is Dead

Top Ten Twitter "so I pepper sprayed him" Jokes

Occupy Wall Street: Day 9 - 200+ Arrested - MSM Finally Wake-up

Three Rules for Living through the Second Depression

Occupy Wall Street Day 8: 100+ Arrested for Peaceful, Legal Protest; Nets & Pepper Spray Used.

Comments

The time limit for entering new comments on this article has expired.

This limit can be removed. Our paid membership program is designed to give you many benefits, such as removing this time limit. To learn more, please click here.

Comments: Expand   Shrink   Hide  
4 people are discussing this page, with 10 comments
To view all comments:
Expand Comments
(Or you can set your preferences to show all comments, always)

Let's see how much of what the credit card industr... by Chaz Valenza on Friday, Dec 10, 2010 at 12:24:31 PM
Hi Chaz!I always look for your articles. You write... by mike buchan on Saturday, Dec 11, 2010 at 6:39:12 AM
I have to read your diaries. I hope you've been w... by Chaz Valenza on Saturday, Dec 11, 2010 at 11:38:18 AM
You may find some reference to living in Russia in... by mike buchan on Saturday, Dec 11, 2010 at 12:25:58 PM
Y'LL can't have the same thing!Grand Theft Pentago... by John Smith on Friday, Dec 10, 2010 at 9:21:42 PM
But Y'LL need to have back up before it! I play da... by John Smith on Friday, Dec 10, 2010 at 9:35:51 PM
bancrupt yourself every 7 years! get on peak and d... by John Smith on Friday, Dec 10, 2010 at 9:43:14 PM
Do not vote for reps and dems anytime in your life... by John Smith on Friday, Dec 10, 2010 at 10:01:22 PM
Property taxes were established for purpose that ... by John Smith on Friday, Dec 10, 2010 at 10:19:34 PM
I've rarely paid with plastic. Figured out decades... by Miriam Callaghan on Sunday, Dec 12, 2010 at 12:35:25 PM