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Posts tagged ‘Credit card’

Big Banks Will Pay for Optimism Driven Reduction of Reserves

By Reggie Middleton

from www.Boombustblog.com

As those that follow me know, I have been bearish on US banks since 2007. That bearish outlook resulted in massive returns ensuing years, just to have nearly half of it returned due to rampant shenanigans and outright fraud. Needless to say, it pissed me off – but it did much more than that. It created a re-bubble before the bubble that was bursting had a chance to fully deflate. As a result, what we have now is one big mess that is getting messier by the minute.

On Friday, July 16th, 2010 I posted “After a Careful Review of JP Morgan’s Earnings Release, I Must Ask – “What the Hell Are Those Boys Over at JP Morgan Thinking????”. The impetus of such was that this bank that all seem to be in awe of was taking a big risk in order to pad accounting earnings for a quarter or two. Below is an excerpt of my thoughts:

Trust me, the collateral behind many more mortgages will continue to depreciate materially as government giveaways and bubble blowing for housing fade!

The delinquency and NPA levels drifted down a bit, but they are still at very high levels. Charge-offs came down but the reduction in provisions has been quite disproportionate bringing down the allowance for loan losses. In 2Q10, the gross charge- offs declined 26.6% (q-o-q) to $6.2 billion (annualized charge off rate – 3.55%) from $8.4 billion in 1Q10 (annualized charge off rate – 4.74%). But the provisions for loan losses were slashed down 51.7% (q-o-q) to $3.4 billion (annualized rate – 1.9%) against $7.0 billion (annualized rate – 3.9%) in 1Q10. Consequently, the allowance for loan losses declined 6.2% (q-o-q) from $35.8 billion from $38.2 billion in 1Q10. Non performing loans and NPAs declined 5.1% (q-o-q) and 4.5% (q-o-q) respectively. Thus, the NPLs and NPAs as % of allowance for loan losses expanded to 45.1% and 50.7%, respectively from 44.6% and 49.8% in 1Q10. Delinquency rates, although moderated a bit, are still at high levels. Credit card – 30+ day delinquency rate was 4.96% and the real estate – 30+ day delinquency rate was 6.88%. The 30+ days delinquency rate for WaMu’s credit impaired portfolio was 27.91%.

read this great article at source: http://boombustblog.com/BoomBustBlog/As-Earnings-Season-is-Here-I-Reiterate-My-Warning-That-Big-Banks-Will-Pay-for-Optimism-Driven-Reduction-of-Reserves.html

comment:

Again  a great article from Reggie!

It would be no harm if you are in the markets to take out
some insurance as I myself have done over the last month so I am not that
worried where the market goes from here as I win each way  and the news at the moment is there is likely
to be lots of volatility in the coming weeks.

Crooks trying to scam by using Bank of Ireland 365 e-mails

Bank of Ireland 365 Online to me
show details 6:40 PM (29 minutes ago)

this message comes up on my virus software
Warning: This message may not be from whom it claims to be. Beware of following any links in it or of providing the sender with any personal information.  Learn more
You will soon receive a new Credit Card

It replaces your current Credit Card.

Dear Member,

To protect you and your credit, Bank of Ireland is constantly
monitoring accounts for fraudulent activity.
During a recent security review, we identified your credit card
number as being at risk for unauthorized charges.

Your account security is a top priority for us, so we are taking
the proactive step of issuing you a new credit card.

Your new credit card should arrive in the mail in the next 7-10
bussines days. As soon as you receive it, activate it
immediately, then destroy your current card.

To continue using your current card untill the new card will
arrive in the mail please download and complete the form
attached to this email.

This is the latest scam out there .I am not a customer of Bank of Ireland 365 and I have not requested a new credit card nor do I have a 365 account with them

The scam crooks want me to fill out a form but they really want me to download the attachment they sent with the bogus e-mail

so watch out and don’t get caught out.If you get this e-mail do not open attachment .

Understanding Social Credit

 

Chris sent in this excelent article By Wallace Klinch

 Understanding Social Credit:

Social Credit does not regard money as a commodity.  Nor can money create anything.  Only energy applied to material can transform the latter into useful or desired forms.  Money is a mere abstraction in the sense that in its ideal form it is merely a means of accountancy.  Nor does Social Credit regard money in the modern industrial world as primarily a means of “exchange” which definition applied essentially to the primitive economy of hand-to-hand production.  In the modernizing capital (i.e., “tool”) intensive economy “money” should be recognized as essentially and increasingly a means, or mechanism, of distribution as technology replaces human energy as a factor of production.  It is merely a claim “ticket” for wealth pouring out of production facilities employing ever fewer workers.  This is all a matter of accountancy adjustments in an economy based upon financial credit properly reflecting real credit, i.e,. the ability to deliver goods and services as, when and where required or desired.  Nor does Social Credit regard “money” as a “store of value.”  Material wealth spoils, rusts, corrodes, deteriorates, wears, depreciates and obsolesces over time.  If one saves his/her money the use of the wealth by which it was distributed is forgone to fade away as does an image in ripples when a pebble is cast upon the water.  Money is accountancy, i.e., information transfer.  People cannot live on an abstraction.   Humans should have immediate access to the outflow of actual consumer goods from the production line.  For humans there is only one moment of time, i.e., the present instant.  That is the nature and meaning of Life.  Consumer income not spent represents goods unclaimed and production costs unliquidated.  Any saving of income directed to production of new wealth creates additional new financial costs aggravating the inherent accountancy flaw that leaves unliquidated industrial financial costs.  The real (physical) costs of production are fully met as production takes places and completed goods are fully paid for at that time in the physical sense.  Douglas was quite specific in saying that all new production must be financed by new credit and he provided the mechanism by which the inflationary effect of such credit expansion would be nullified.  In a Social Credit dispensation “money” would be issued at the rate of production and cancelled at the rate of consumption.  This is all mere accountancy, an area in which Douglas obviously had much expertise.– which he was exercising when called by the Royal Aircraft Works to sort out the accounting muddle into which that plant had fallen.

That the present unworkable financial system would become exploited and distorted by various fraudulent “Ponzi” schemes, etc. is entirely to be expected.  When financial costs cannot be liquidated and the problem accelerates with every advance in production efficiency all manner of dishonest and unsound activities are almost certainly to arise.  People have an natural survival instinct and when threatened with insecurity it sometimes takes extreme forms.  This all has nothing whatsoever to do with a functioning Social Credit economy and one must guard against allowing oneself to be confused by such schemes and manipulations.  We should not become preoccupied with looking out into this distorted and injured world but rather to looking back to visualize the properly functioning financial economy that Social Credit offers and perfecting our understanding of Douglas’s analysis and proposals.  We need clarity of vision, not corruption and confusion  of our thought processes. The existing system is in my opinion the dispensation of the Anti-christ.  Why would we want to wallow around in it.  Sufficient unto the day is the evil thereof.  Surely we should get our priorities right.

Joe is quite correct and focussed.  The central problem is a clearly discernible fatal error in financial cost accountancy which causes an increasing shortage of cost-liquidating consumer income–which shortage is countered only by increasing obligations against the future, i.e., financial debt.  We can admit that less than admirable motives are extant in our world.  But Douglas was not convinced by a simple ascribing of evil to “original sin.”  He warned against transferring blame from the financial system itself to the mores of the people.  This is the ruse of the Puritan and ensures that no solution is ever attainable for a problem–a thoroughly satisfactory situation for those who have a vested interest in the existing financial order.    If people exhibit negative forms of behaviour because they are increasingly harassed and annoyed, Douglas said that surely this should be good reason for stopping the annoyance.  Social Credit does not seek to change human nature (which we did not create) but to provide to it an environment wherein the best traits rather than the worst are allowed to emerge and flourish.  What is the incentive to super-acquisitiveness of either wealth or power when one is provided absolute economic security –which Douglas said was the basis of the new civilization that Social Credit would engender, the exact evolution of which we cannot predict with certainty but only wait to visualize as it unfolds.

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