Friday, August 31, 2012

Canada’s consumer leverage growth will not end well


I wrote a comment in the reply section to the above article link, and it has gone missing, how sad is that! I will leave a similar comment here just to show you what even those who claim to be warning about debt problems, will hide from the public.

Credit card debt needs to be incentivized in the following manner...The higher the percentage of the monthly payment made  versus the total due, the lower the interest rate charge assessed for that month.

This is a sample chart for the credit card low interest rate incentive idea.
  1. Pay 15% of the total due for that month, pay ZERO percent interest.
  2. Pay 12% of the total due for that month, pay TWO percent interest.
  3. Pay 10% of the total due for that month, pay THREE percent interest.
  4. Pay 8% of the total due for that month, pay FOUR percent interest.
  5. Pay 7% of the total due for that month, pay FIVE percent interest.
  6. Pay 6% of the total due for that month, pay SIX percent interest.
  7. Pay 5% of the total due for that month, pay SEVEN percent interest.
  8. Pay 4% of the total due for that month, pay EIGHT percent interest.
  9. Pay 3.0% of the total due for that month, pay TEN percent interest.
  10. Pay 2.5% of the total due for that month, pay TWELVE percent interest.
  11. Pay 2.0% of the total due for that month, pay FIFTEEN percent interest.
This percentage of the monthly minimum credit card incentive payment method would allow banks to address how their customers are doing overall. If the percentage of customers opting for the lowest percent of the total due payment, increases, then the economy is struggling. 

However, the incentivizing of lower interest rates for higher monthly minimum payments promotes responsible consumer stewardship of debt, and that should be the new goal going forward for the entire world.

Please consider viewing and then signing the Debt Neutrality Petition by clicking here.


Thursday, August 30, 2012

From Zero Hedge, As HELOC Delinquency Rates Hit A Record, Are Student Loans Next?

One gripe I have with this Zero Hedge article that claims there is no debt deleveraging, just defaulting going on, is that there is no conclusion as to what is really going on. 
I believe what is really going is the government and bank's desire to destroy people's credit rating rather than restructure debts without declaring a default.
That's what this is all about, banks REFUSE to restructure consumer debt unless the debtor is first declared in default, even if the tanking of the economy and loss of equity values that chain reacted into people losing their jobs was a direct result of wall street home securitization fraud investment schemes, banks and the government just don't care.

The universal loss of equity has wreaked havoc with people's own personal wealth to consumer debt ratios, once again requiring a debt restructure, which will only happen if the debtor is scarlet lettered with a downgrade of their own credit rating, first, and then the banks may talk about a debt restructure.

Wednesday, August 29, 2012

From "Credit Today", Brit Families hamstrung by interest repayments.


Dare I ask if that is before or after the Value Added Tax?
Click on image to enlarge.

Please consider viewing and then signing the Debt Neutrality Petition by clicking here.

From Financial Post, "Our love affair with debt keeps Canada’s banks on top."

Warning signs are loud and clear, Canada may be the source of the last drop of economic blood that is being squeezed from the economic turnip before another huge worldwide "correction" occurs. 

In typical fashion, Canadian banks are "doing well" by imposing more and more inevitable debt death sentences to Canadian citizens. The Financial Post questions why Canadian banks are able to post double digit profits and higher dividends even as Canadians go farther and farther into debt.

Debt Neutrality Petition believes that as the wealthy get wealthier, the REINVESTMENT of their existing wealth requires more and more consumer debt. 

We have met the enemy, and they is the billionaires and trillionaires.

Please consider viewing and then signing the Debt Neutrality Petition by clicking here.

Saturday, August 25, 2012

Consumer Debt in Canada, Low Interest Home Equity Lines are surging in popularity.

The Wall Street Journal in Canada is reporting that rising consumer debt is a bad thing because it is based on low interest rates on home equity lines. I guess the message there is it's better to just charge higher interest rates and make the lower classes poorer while risking less money.

Here's a question to ponder, how come there are all types of regulations to qualify for any type of loan, but there are no regulations on how to spend the loan money?

Why not cap the amount the homeowner can draw every month? Or, those who agree to a monthly cap get a lower rate, those who want all of their equity available instantly pay a higher interest rate?

Lets say a homeowner gets a 100,000 dollar home equity line. Why not tie in the interest rate charged based on how much they "draw" every month. The less the homeowner draws per month, the lower the interest rate, the more they draw per month, the higher the interest rate. 

For credit cards, why not tie the interest rate into what percentage of the total due is paid back? Pay back 10% of what is owed every month, get a 5% interest rate charge. Pay back only 2% of what is owed, get a 13% interest rate charge. 

Of course these ideas have to be incorporated from the time the card is started, and not suddenly changed. This incentive could be offered to existing credit credit cards if nobody is suddenly being charged more interest for making the 2% minimum charge.

It appears as if the banks, wall street and the government want risk free interest rate profits, so anybody who is paying high interest rate charges on low monthly payments is left alone, then turned into an indentured servant for life if they go into default.

Please consider viewing and then signing the Debt Neutrality Petition by clicking here.


Friday, August 24, 2012

Anthony Randazzo of Reason Magazine discusses consumer debt with Fox Business News, refer's to some homeowners as Toxic Debtors, ouch!

While I commend Reason Magazine's Anthony Randazzo's foray into discussing consumer debt on Fox Business News, when Randazzo begins to discuss Toxic Debt and the sub human owners who stink of it, I lose interest.
CLICK ON IMAGE TO ENLARGE IMAGE. 
CLICK HERE TO SEE VIDEO,
CLICK ON IMAGE TO ENLARGE.

Better still, shouldn't most consumers lose interest, as in the interest rate charges on their credit card and student loan debts so they can actually pay down their debts?

Toxic Debt is one of those happy go lucky terms, kind of like Soylent Green. See the movie if you want to know what Soylent Green is, but you can probably figure it out.

The insensitivity of calling a homeowner's debt "toxic" when their loss of equity was induced by home securitization fraud initiated by wall street, is one reason why Fox and the Republican party disconnects with the middle class.

Please consider viewing and then signing the Debt Neutrality Petition by clicking here.


Thursday, August 23, 2012

When a country like Canada appears to be doing well economically, it just means they have given out more credit to people who in the future won't be able to pay it back.

I thought Canada had a solid economy, one the U.S. should emulate.  Well it turns out that is just a myth. 

It seems to me that any country that has a solid economy is simply an economy that has extended more credit to more people who won't be able to pay it back down the road.

I believe it's called kicking the economic can down the road.

Wednesday, August 22, 2012

Final fantasies: The illusions of personal debt and Canadian consumerism


Interesting article about consumer debt in Canada. I think the author left out two very important conclusions. 

Firstly, super low credit card monthly minimum payments has led to too much debt.
Secondly, the ratio of equity to personal debt exploded around 2008 and governments around the world did nothing to offer any type of consumer correction. 

Hence, the reason for this blog dedicated to consumer debt and the Debt Neutrality Petition. 

Please consider signing the Debt Neutrality Petition by clicking here.

Monday, August 20, 2012

Why You Should be Concerned about Consumer Debt.

CLICK ON IMAGE TO ENLARGE. 
CLICK  HERE TO SEE THE VIDEO.
CLICK ON IMAGE TO ENLARGE.
I attempted to post about my Debt Neutrality Petition on the Reason Magazine Facebook site about a week ago. I don't recall if the post stayed on the page however.

This transcript is automatically generated from Fox News.

Experts -- thank you so much of economic concerns -- sent us President Obama makes that surprise appearance at the white house press briefing just moments ago.

My next guest says that though consumer debt should really have our attention Anthony Randazzo -- director of economic research at.

Reason foundation -- have you back on the show I don't know if you're able to listen to the president's comments but talking about the overall economic -- and fiscal policy and all of these things that you say that.

Consumer credit.

Our debt load -- soaring and it should be a forefront -- fixing the economy.

Absolutely and we talk about monetary policy -- housing policy.

You know whether we need -- more stimulus or not.

None of it actually matters that much when you're thinking about the accurate level of debt that were at thirteen trillion dollars put -- contact their -- so that's that is -- where we rat in 2007.

They kept going up a little bit we've had some deleveraging.

About 2.5 percent a year but the problem is in the past here.

It's slow down we're now at -- add that back that's willing to talk about now's it's really only about 1% a year sort of like.

Coming down with that means is that if you want to try and stimulate the economy as the Democrats do you try to put money people's pockets -- got so much debt.

There's going to be paying down -- they're not going to be consuming that can be buying.

Let's say year we want -- of Republican approach -- wanna cut taxes for small businesses or her households people are gonna take those tax cuts.

Pay down that slot small businesses -- bankroll come you know comes out of what individual.

And household balance sheets so now.

They are -- they've got all this debt to they're not going to be investing in business.

We're just start -- conversation because the present -- little bit tight for time you come back and we'll carry on with talk about some solutions, what can be done, Anthony Randazzo from Reason Magazine -- thanks.

Please consider viewing and then signing the Debt Neutrality Petition by clicking here.

Sunday, August 19, 2012

Consumers have lost two to three times more money in home equity since 2006 than the total amount of credit card and student loan debt combined!

According to Chase Bank, consumers have lost around 7 trillion dollars since 2006 in home equity. Credit Card and Student loan debt is between 2 to 3 trillion dollars. 

In other words, consumers have lost almost two times more in home equity de-valuation since 2006 than the total amount of consumer debt in the form of credit card and student loan debt.

I find this revelation a stunning tragedy and one that needs to be mulled over by President Barack Obama as he continues to side with the banks and wall street on all issues related to the loss of wealth by main street.

Please consider viewing and then signing the Debt Neutrality Petition by clicking here.

Saturday, August 11, 2012

Wall Street Journal kind of sort of thinks it's ok that consumer debt has risen for the past 10 months.

I don't like the Wall Street Article, "Rising Student Debt Weakens Credit Story".

I don't like the article because the headline seems to perpetuate existing falsehoods about rising consumer debt. The article states...
If the consensus expectation for a 10.5 billion dollar expansion is correct, total consumer credit would finally return to a 2008 high of about 2.58 trillion.
This would be another reason for cheer following Friday's stronger-than-expected jobs report. A 10th consecutive monthly increase in such credit, which excludes mortgage debt, would show one of the economy's main engines is continuing to tick over despite concerns consumers have lost confidence recently. 
What I find terrifying about the above statement is that the article is stating that we are approaching debt levels that matched debt levels during the height of the economic crash of 2007 / 2008, as if it was a good thing.

Perhaps consumers have "lost confidence" because their neighbors are losing their homes, and perhaps that is because up to a billion dollars a day is being paid in interest charges only on U.S. consumer debt.

Please consider viewing and then signing the Debt Neutrality Petition by clicking here.

Click on any image below to enlarge text for that image.



  




Friday, August 10, 2012

Ogilvy New Zealand advertising agency wins consumer affairs and consumer debt account.

It will be interesting to see the end result commercials that Ogilvy New Zealand produces for New Zealand's Ministry of Consumer Affairs. The commercial messages will revolve around saving energy and on consumer debt.

New Zealand sounds like a responsible country that does not want to trick it's citizens into piling on debt so that the bankers can puff up their shoulders and say the world revolves around them.

Please consider viewing and then signing the Debt Neutrality Petition by clicking here.

Thursday, August 9, 2012

In Greece, the Rich Tycoons of the world are attempting to prop up interest rate payments by giving Money to Greece so Greece can give it right back to them!


Consumer debt and debtor nations are rapidly falling into the "Emperor has no clothes" story line. Everybody is just going along with the billionaire and trillionaire "kings" even as interest rate charges on all existing debt threaten to suffocate the world's economic climate.

This is literally turning into a drug lord actually giving his customers free drugs until the customers can figure out a way to rob someone else and bring the drug lord the next interest rate charge payment.

Crazy stuff for sure.

Please consider viewing and then signing the Debt Neutrality Petition by clicking here.

Wednesday, August 8, 2012

What is Debt Neutrality?

Debt Neutrality would allow consumers to pay down their existing credit card debt and student loans with no more interest rate charges, penalties or fees as long as they do not create new debt of an equal or greater amount.

Debt Neutrality could also be applied to Federal debt as well. Every country cannot be in debt to other countries. This means the world is in debt to a handful of ultra rich people.

Isn't it time to simply pay what is owed, interest free, with no more penalties and/or fees, until consumer and country debt is at a MANAGEABLE LEVEL?  The obvious answer is yes.

Please consider signing the debt neutrality petition. You may not have unflinching debt, but there could be members of your own extended family who would never tell you about their debt.

Please consider viewing and then signing the Debt Neutrality Petition by clicking here.

Tuesday, August 7, 2012

Financial Terrorism thrives on consumer debt, in South Africa Consumer Debt is causing Suicides and Forced Prostitution.

The world's wealth should be shared in ways that don't produce debt slavery and prostitution. The world is now regressing socially as those with money are using it to force others into slavery and prostitution.

Monday, August 6, 2012

When Good Intentions about Consumer and Country Debt YouTube video delivers the wrong message.




It seems to me that this video is warning everybody that the countries of the world better pay their debts before there is a global economic failure.

If the entire world is in debt, then just whom are the world's countries in debt to, martians? It would appear that most of the world's debt is held by a select few elitist billionaires and trillionaires. 

Otherwise, if countries owned each other's debt, they could just cancel out each other's debt, no?  If all of this debt is owned by elitist billionaires and trillionaires, then Debt Neutrality would be an excellent way to reign in uncontrolled deficit spending, no?

Please sign the Debt Neutrality Petition at Change dot org. The Debt you save may be your own. And don't forget to like Debt Neutrality on Facebook.

Please consider viewing and then signing the Debt Neutrality Petition by clicking here.

Sunday, August 5, 2012

Excellent article on student loan debt that can take decades to pay back, even when the student finds a decent job.

A lot of stories about student loan debt focus on students who don't have jobs. One would think that if a person actually got a job, they could then pay down their student loan. 

However, some students might need time to either get a job, or work their way up to a decent paying job, and in the meantime, the interest rate charges keep accruing.

Connie Green is one such student. Even though she now has a good job, it may take her two decades to pay down her student loan debt. Connie makes some excellent points in the article. These types of articles, that have honest comments and observations, rarely make it into print. I suggest reading the article to anyone who cares about this country.

The Debt Neutrality Petition appears to be the logical solution once again.

Please consider viewing and then signing the Debt Neutrality Petition by clicking here.

Saturday, August 4, 2012

At pymnts.com, it's always a good day when consumer debt rises.

It's important to expose the whorish behavior of financial institutions and websites who celebrate rising consumer debt.  

Today we expose PYMNTS.com. Payments dot com seems absolutely giddy reporting that consumers are "warming up" to the idea of going more in debt. 

I could not make such craziness up, these "rising consumer debt is a grand and glorious thing" websites actually exist! 

Debt Neutrality is encouraging you to be a stark lunatic raving mad supporter of Debt Neutrality on Facebook, Change dot org petition, and of this site simply because places like PYMNTS.com actually exist and apparently are clueless to the harm they are doing to society.

Please consider viewing and then signing the Debt Neutrality Petition by clicking here.

Friday, August 3, 2012

England has had more retail failures in the first five months of 2012 than they had in all of 2011.

So England has had more retail failures in the first five months of 2012 than they did in all of 2012...here is the quote, 
“According to the Centre for Retail Research, as many retailers failed in the first five months of this year as they did throughout the whole of 2011. By the end of May this year, nearly 3,000 stores were threatened with closure and over 36,500 employees affected – some 50% more than throughout the whole of 2011.
But there is more....
“High consumer debt, limited refinancing options, high living costs and dwindling incomes all continue to weaken consumer demand and often sound the death knell for beleaguered retailers.”
Now lets analyze what is being stated up above.
We the bankers are so filthy rich we are now actually vaccuuming out the economic innards of our customers even as we attempt to figure out a way to foie gras what's left of them.
If you want to fight back, please support the Debt Neutrality Petition. The Petition link is at the top of this column. You are in on the ground floor of the only way to save the world's economy from intended collapse by the elitist bankers and the puppet politicians whose strings they pull.

Politicians do listen to overwhelming consensus. Please support the Debt Neutrality Petition before you have nothing left to lose.


Wednesday, August 1, 2012

Consumer Debt, is it always supposed to go up, when does Consumer Debt go down?

Congress is not protecting consumers. If congress was protecting consumers, they would require a consumer debt "float" between a high range and a lower range. Clearly 3 trillion dollars of consumer debt is too much for too many americans.

I would suggest that consumer debt should not go above one trillion, that consumer debt should actually "float" between 500 billion and 1 trillion dollars. So far, consumer debt has just risen, and the more consumer debt rises, the more the U.S. economy flails.