Credit Scoring? Are you kidding!!!

Banks are changing all the credit rules even with each other. They are raising the rates consumers pay on credit cards and lowering the borrowing limits where they can. All this from the liars, and cheats who just got billions of our dollars for a bailout. What does this all mean? Please read on.

So, let me see how this works. Taxpayers give the bankers more money because their Harvard MBA didn't teach them about risk and they can't manage their business properly. Then bankers limit the very people who gave them the money (taxpayers) the ability to obtain credit at a decent rate or dollar amount because their scores have gone in the toilet because of what banks have done to their lines of credit. However, we still use the same credit scoring models because it would be too expensive to do anything else even though the game is now rigged. We should put credit scores on banks, not on consumers. Then consumers will know who to borrow from and who to do business with.

It used to be a lot better system when a family went down to the local Savings and Loan and got a mortgage loan from the person they went to high school with. But then the Wall street banking types came in and screwed that up too (google Keating Five). Now, with all of our sophistication and Ivy League MBA's rigging the game we have no idea who we are dealing with. We just know they aren't quite sure where the money is we gave them. Wonder what they would say if a consumer came into their bank and said the same. I am telling you these people are financial terrorists and should be treated as such.

Liars, and Thieves, and Bears, Oh My.

So when we talk about the street setting prices and how analysts give thumbs up or down on companies performance are these the same thieves that leveraged money at a
40 to 1 rate? If that is true then these same thieves are still setting the boundaries and have the power to make or break companies simply on what they think. Why in the world would anyone listen to them!!! Also, where is the incentive to be prudent in the near term with money. The feds will bail liars, and thieves out no matter how corrupt and/or stupid and/or greedy they are.

I also think we should prosecute some of these folks (Madoff and such) for treason. Have they not put the country at risk? There must be punishment here or at least some sort of harsh deterrent so this doesn't happen again. Accountability, Accountability, and more Accountability. These people are economic terrorists and should be treated as such. They knew what they were doing, knew the risks and lied through their teeth. Mark Haines is right, bury your money in the backyard

Conspiracy Theorist Alert!!!

It was not all that long ago that our federal government wanted us to invest some of our social security money into the stock market. I have not heard any more on this idea in a while, have you? You don't think that they wanted us to do that because they saw the current crisis coming and thought if they could get tax dollars in the system by offering/mandating these types of accounts that the crisis could be averted do you?

On another note it is interesting that our government will give hundreds of billions to Wall Street firms with absolutely no idea what things are worth but want to grandstand with the auto industry for what amounts to me loaning you a quarter. Trillions given, that's right given, the banking folks who caused the whole crisis with incredibly risky instruments, and a pittance for the once mighty auto industry. Working guy takes it you know where again.