Credit cards. What should you do?

Credit Cards again

JP Morgan Chase, Citibank, HSBC, Capitol One, BankAmerica, American Express and other major banks issue credit cards to make money. Credit cards can be a useful tool for an intelligent educated responsible consumer. Credit cards can be destructive for consumers who are not intelligent, educated and responsible.

On June 25, 2009, Bernanke (Chairman of the Fed) appeared before Congress to lie about the lies told by Lewis (CEO of BAC) and the lies told by Paulson (former Sec. Treasury and CEO Goldman Sachs). Each called the others, liars. Each told the truth in this case. They all give money to the banks who issue the credit cards.

The members of Congress (who are all liars) use the Congressional Hearing to enable their staff (and themselves) to solicit bribes from the financial services industry. Many issue credit cards.

At the same time, Citicorp announced they are giving huge raises in salary to their top executives and key personnel. Citigroup was given somewhere between $30-90 billion by Congress, Bernanke, Paulson, Obama and Geithner (the new Sec. Treasury). The money Citigroup received was from “bailout”, TARP and other “giveaways”. Citibank is one of biggest issuers of credit cards.

Important government employees get “free” credit cards, expense accounts, cars, gas, vacations, flowers, fine dining, computers and other stuff. The members of Congress, their aides, many relatives, friends and endless other people get the same (including the “free” credit cards and expense accounts).

City and State elected officials learned from Congress. (Or maybe it was visa versa) They get “free” credit cards and expense accounts.

Most major financial services companies, auto makers, NGOs, defense contractors and others that receive government money give “free” credit cards and expense accounts.

Question: If all these parts of government, politicians, etc. get “free” credit cards and expense accounts, who pays? The answer is the people who pay taxes. (*Note- A lot of people have stopped paying taxes.)

Many people who owe money on their credit cards have stopped paying. Issuers of credit cards have negotiated to accept less than the amount owed to settle the debt. Translation: If you stop making your credit card payments, you have a chance of settling for a fraction of what is owed or zero. In some cases the government can wipe out or pay the debt. Ask your elected representative.

Tom notes that the only people who make credit card payments are those who continue to pay. The people who do not pay, pay very little or nothing at all.

Tom suggests you send your credit card statements, bills, etc. to your Congressman or other State and Local Officials. Ask them to pay the amount owed and tell them you want “free” credit cards, expense account and other nice things they give away.

Tom also suggests that you take the money and fund a separate “debit card” account at a trusted local institution because all credit cards may be stopped.

Do you know banks package their credit card loans into securities and sell them to investors? Do you know your pension plan or retirement fund may contain securitized credit card loans? Do you know mutual funds and annuity companies and pension plans invest in credit card loans and mortgage loans and car loans? Do you know that a lot of these loans are “underwater” and will go “kaput”?

Do you know that a lot of banks, Wall Street firms, Insurance Companies, etc. give some credit card profits (bribes) to elected officials?

But … You know.

So … Send your credit card bills to your elected officials and ask them to give your “free” credit cards and all that “free” stuff.

And ... If you have any investment (Pension Plan, Mutual Fund, etc.) that contains credit card, auto, consumer, etc. loans, GET OUT!