Dawg....
you are the first to "GET IT"!
That's crazy man! Wow! As sad as it is to say, these companies will just have to fail, we'll fail with them, but they must pay.. we can't bail them out.
r
Washington Mutual reverting to previous bad behavior after bail out by fed!
by restrangled 36 Replies latest jw friends
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restrangled
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beksbks
Restrangled, I have to think of it like say................Target. So the Gov bails out Target, by giving them a whole load of .........diapers. Target has to get you to buy those diapers, so they can continue to do business. If they just held on to those diapers, they would have to shut the doors with a store full of diapers. The "product' the banks sell is money, the only way they can make a profit, is to essentially sell you some money so you pay them interest. They are not going to close their doors (we hope) they are going to be bought out. No one is going to buy a business that isn't doing any business. Anyway, my two cents. I'm sure someone will come along and call me an ignoramus.
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restrangled
beks, I agree with you, but does anyone other than myself find this offensive after this bank was about to go belly up? I mean, they can't wait until Monday morning to extend credit?
What is with these banks, are they so desperate for funds? They haven't even had their own bad debt wiped out yet and they are offering more of the same.
Its disgusting in my opinion. As soon as I can I will be closing out my card from this bank.....not great for my credit rating but I don't care.
r.
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Dagney
IMHO bks, that's a good explanation.
I was going to post something similar. My company is looking to increase their credit line because we are looking to take on a large (good) customer that will requires 180 day terms. We need additional credit to carry that amount of receievable.
If the bank does not increase our line, we cannot take on the new business, which is a good business, so we all lose. The bank loses the income from the interest we pay, we lose the sale and profit, the good customer loses the opportunity to carry our product in their stores for their customers, and our vendors in turn lose out on sales to us, so on and so on. Everybody's business grows with the increased borrowings.
.02
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beksbks
Thanks Dagney. Your scenario is just how I see it.
Restrangled, I forgot to add, and Dagney reminded me, that you are probably a good customer. You will make your payments, and you have good credit. That is exactly what they actually should be doing. If things shut down, we all lose. It's scary to think that if we don't all keep buying, our economy goes down the tubes, but that's the way it is.
It may have been more decorous to wait until Monday :-) I suspect this was in the works already.
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SacrificialLoon
If we actually made stuff, and were running a trade surplus we wouldn't have to depend on consumerism since other people buying our stuff would be supporting our economy, but instead we support China's rampant saving with our rampant spending.
I have a few credit cards, and they'd always raise the credit limit on them, and I'd just blow it off. They can raise my credit limit all they want, it's still not gonna make me use their card more. -
mustang
A friend of mine HAD a 250K$ Line of Credit: she uses this to manage her 16-odd units of quad-plexes. WaMu cut it back to 75K$, causing her considerable grief in an expansion plan. They told her they were getting out of that business.
You are a smaller good customer and got an attaboy; a larger good customer got a chop. You may have ISD: Insufficient Data.
Mustang
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Dagney
A friend of mine HAD a 250K$ Line of Credit: she uses this to manage her 16-odd units of quad-plexes. WaMu cut it back to 75K$, causing her considerable grief in an expansion plan. They told her they were getting out of that business.
Hmmm. Interesting. Just today I received an informational letter about the situation, and it was "warning" of that very thing. However they were discussing reducing unused credit lines and extended the credit where they can make more money.
That is a tough break for your friend. I hope she can find a way to have the extra line with all those units.
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MeneMene
Another thing to keep in mind is there are two institutions that have similar names - -
WASHINGTON MUTUAL BANK FSB, PARK CITY, Utah has a very good rating and does not appear to be in trouble.
Bankrate.com Star Rating:
Safe & Sound CAEL Rating: 2However, the following bank is in trouble.
WASHINGTON MUTUAL BANK
HENDERSON, Nevada
Bankrate.com Star Rating:
Safe & Sound CAEL Rating: 5 -
mustang
1 - cutting back unused large credit lines
2 - slightly enhancing smaller credit lines
Neither one of these appears unsound. In fact, #1 seems prudent; #2 will not kill them.
Mustang
