Category: Blogs

Whatever it takes. Whatever. It. Takes. I’m referring to the new bank bailout plan that will cost between $1 trillion and $2 trillion, according to the Wall Street Journal. Consumers and businesses need access to more credit (debt). And, dang it, we’re gonna make sure that happens. That’s how I read the situation, at least.…

Next time I hear someone complain about high interest rates on credit cards in the U.S., I’ll be sure to pass this story along to them. Wal-Mart de Mexico, which is known as Walmex, plans to ramp up its credit-card business in Mexico by the end of the year, according to Bloomberg sources. All told,…

Normally I just update my previous blog entries if there is a subsequent development in the story. However, I’ve decided that it makes more sense to do a separate entry for this one. You’ll recall my earlier blog entry this week on Houston’s proposal to use taxpayer dollars to help some citizens get better credit…

I got this idea from one of my regular readers. The reader was curious about my own portfolio. In particular, I was asked if I had any regrets or if I would have done something different along the way (assuming I could do it all over again). I was also asked to rank order my…

Even though more and more people are falling behind on their car payments, that doesn’t mean the repo man is rolling in the dough. In fact, it turns out that the repo man is struggling as well. Desperate borrowers, who aren’t willingly turning over “their” cars, are making it as difficult as possible for those…

BusinessWeek’s Chad Terhune and Robert Berner have an excellent story on FHA-backed loans. According to the subheading, “the same people whose reckless practices triggered the global financial crisis are onto a similar scheme that could cost taxpayers tons more.” Great. Just what we need. In addition to laying out the situation, BusinessWeek does a sweet…

A few days ago I had an interesting conversation with a friend. She knows about my interest in credit. I had not seen her since launching this blog, so I took the opportunity to promote it. What she said next surprised me. Instead of reading my daily blog entry (something that should take no more…

Researchers at three business schools say that statistical models that were used to predict loan defaults didn’t work because these models relied too heavily on hard information, such as credit scores and loan-to-value ratios. Soft information, such as job security, upcoming expenses, and behavior, would have been more useful. The incentive to collect more information,…

Yesterday I highlighted an Atlanta Journal-Constitution story about American Express and its penchant for cutting credit limits — in part — because of the shopping habits of its customers. Well, Jim Wooten, writing in the very same publication, says that companies like American Express should employ every resource they have to weed out risk. Indeed,…

I think we have it pretty good in the United States. That’s my conclusion after reading a Los Angeles Times story that detailed the Chinese credit card industry. In China they don’t mess around. If a card user intentionally defaults on a debt as little as $3,000, that person could be sent to prison for…