Obama is meeting with bankers today to discuss credit card fees and interest rates.
In this economy, people are defaulting on their credit card payments at a record level. Some believe that credit card defaults will rank with bad mortgage debt as the next banking foible. Banking is still at the center of the recession, so its more wood on the economic collapse fire.
Banks on the other hand have lost all modesty and are charging enormous fees even to responsible customers. The best move right now is to eliminate all credit card debt, if possible.
Futures are up based on an excellent earnings report from Apple. More earnings reports are due out today along with reports on home sales in March.
Unless futures are very low or very high, at this point they only indicate how the market probably will begin the day. As we have seen, the market is u-turning frequently. Yesterday for example, it opened down, spent most of the day up, and then closed down.
I predicted two rally days for this week and so far its been one rally and two stinkers.
Reuters: Stock index futures point to gains on Wall Street
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I NEVER use revolving credit. I do use AMEX but that has to be paid every 30 days. I've taught both my kids from day one that a credit card is really just a small plastic shovel with an ability to dig an enormous hole in your bank acct. Neither have credit cards. Life might seem a bit tougher if you only buy what you can afford but it's a whole lot less painful then having the loan sharks ( the banks and credit card companies) bury you. I've taught them credit has it's uses but not for everyday items like food , rent, utilities etc or luxuries.
You did a good job by instilling that message.
The screwy thing is this, a lot of the last bubble was credit card debt. We know this. Cheap credit and mass advertising, its a lethal mix.
It seems like people's spending habits are changing a bit since the recession hit. I mean even people who have decent jobs are spending less.
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