(Goodbye Credit Cards 2) AXP

Kenneth Chenault is the CEO of American Express (AXP). His compensation for 2008 was $43,933,172. That means he made over $21,900 per hour. His compensation was determined by the AXP Board of Directors.

AXP (December 2008) asked for and then received $3.9 billion “bailout” funds from the US Taxpayer. AXP’s gross profit for 2008 was $3.4 billion.

Why did the U.S. Government give AXP $3.9 billion? Maybe, it is because AXP gave Congress and other politicians a lot of money? (*1)

AXP makes money the “old fashion” way. They take money from the public and small businesses by charging high interest rates and imposing fees and penalties. They also inflate the cost of merchandise and services by charging high “merchant fees”. This means that even if you do no business with AXP you pay more for goods and services.

AXP also makes our government corrupt by bribing (“contributions”, jobs to relatives, speaking fees, rebates, envelopes stuffed with cash, etc.) politicians and their staff.

Berkshire Hathaway (BRKA) owns a lot of AXP. Warren Buffet (BRKA’s CEO) profits from companies (Coke, Insurance, etc.) that deliver little value, inflate costs and benefit from the stupidity of the American consumer.
Davis Advisory, Vanguard, T. Rowe Price, State Street and other funds also own a lot of AXP. The Board of Directors of AXP is elected by the big shareholders.
The members of Board of Directors are the people directly responsible for paying the CEO of AXP over $21,900 per hour. This means that that the mutual funds (who vote for the Directors) that hold AXP are partially responsible for giving the CEO of AXP over $21,000 per hour and bribing Congress.
Therefore … Davis Advisor, Vanguard, State Street, etc. are all responsible to some extent for the “bad things” AXP does.

What does this mean?
According to Albert (a participating member of CATUSA), it means that AXP is part of the evil that is destroying America. It means the Board of Directors is acting against the interests of the shareholders. It means that mutual funds and pension plans that hold AXP they are acting “against” their shareholders/members by electing the Board of Directors who are looting the company.
What should we do? According to Albert … If you owe interest or fees on an American Express credit card, the amount you owe was probably inflated by the illegal and/or immoral acts of the Credit Card Industry. And if you spent money you didn’t have, you may have been “entrapped” by lies of the Banking/Credit Industries and Wall Street. And … According to Albert, AXP and the banks and Wall Street have already received you tax dollars to make up for their stupidity and losses, including non-payment of credit cards.
So … Albert recommends that you send your credit card bill to your Congressperson, the President and your credit card company and ask them to pay or use the tax dollars they are stealing to settle any outstanding balances.

Do you own shares of AXP? Why? Do you own a mutual fund that owns shares of AXP? Does your pension plan own shares of AXP? Ask them.

If or when AXP (or the funds that hold AXP) collapses, it is better to be first out (SELL NOW)

What about other credit cards?

Do you know that the amount of people who “default” or don’t pay their credit cards is sharply increasing? Do you know that politicians, government employees, government “contractors” and countless others with political “influence” get “free” credit cards? (“Free” credit cards mean the US Taxpayer and your children and grandchildren pay.)

Credit cards may be stopped. Many have already been cancelled, revoked or limited. People trying to buy gas or food with credit cards will be stopped. It is already happening.

What to do? Albert suggests, open a “debit card” account at a new, and hopefully smaller, neighborhood bank. When credit cards are cancelled, debit cards should work. That’s what Albert says and we trust Albert.

(We do not trust or believe what politicians or the banking industry or Wall Street say.) So .... Goodbye AXP.

*1 It works like this, you (taxpayers) give money to government. Congress gives your (taxpayers) money to AXP. AXP give some of the money back to Congress.

*2 According to CCA (Compensation Consultants Associates), the maximum compensation for the top AXP executives should be no more than $325,000.

*3 10 years ago AXP was worth over $60 per share. 5 years ago, AXP was worth over $50.

Bottom line: Shareholders lose. Taxpayers lose. Public loses. Only politicians and AXP top executives and Board of Directors win.

(According to Albert) DON’T PAY! SELL!