Credit Card Policy Change

findfreegold · Posted: Sat Sep 24, 2005 3:35 pm Post subject: Credit Card Policy Change

I heard something a couple of weeks ago about a policy change regarding minimum payments on credit cards. A law will supposedly go into effect next month requiring debtors to double the amount on minimum credit card payments. I would appreciate any advice on certain stocks to short, or go long on that might show increased volitility due to this policy change.
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findfreegold · Posted: Sun Sep 25, 2005 6:34 pm Post subject:

Effeciency, are there certain stocks related to the possible decline in realestste values that you think might be a good idea to sell short? What about REITs (realestate investment trusts)? Perhaps there are other stocks that will decline sharply as a result of devalued realestate. Can you think of some examples of stocks that lost value in 1987 due to or directly related to the decline in realestate values? If so, I would like to sell short in a simmilar category.
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I make handsome profits collecting free gold plated scrap and selling it for up to $100 per pound and more. Go to: http://www.findfreegold.bigstep.com

efficiency · Posted: Sun Sep 25, 2005 11:32 am Post subject:

The new bankruptcy law has two primary aspects. First is to influence/require debtors to reaffirm on obligations (Chapter 13) rather than absolve (Chapter 13). A modern day version of debtors prison.

Secondly, and far less covered by the media, is increasing required minimim payments from 2% of the outstanding balance to 4%. This doubling will be in a stairstep fashion but I do not know the timeframe.

A couple aspects to consider is WHY after decades of lobbying by the banking industry, such a law was finally enacted? Forsee the bursting to the housing bubble (declining collateral values)?

Additonally, there are lot of Joe Sixpacks that live hand-to-mouth, More or less paying JUST the minimum due. What behavior modification occurs when required amounts doublle? Diversion from other spending? Concerted effort to reduce their revolving debt? In isolation, no big deal. En masse, I think it will be a big deal.