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ensurepune
Joined: 17 Feb 2009
ensurepune's page
Posts: 102
510 Magic Points
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Subject: Where it is going to head? towards better definitely not!!
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Wed Mar 04, 2009 8:07 am
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What are the measures Obama Govt should take to stop BK of banks.There was a report that alone in last two months 16 banks have filed for BK.Doesn't it sound really bad?
What are precautionary measure you suggest to avoid the future consequences of this bad financial system.
Whether credit repair is required on priority basis to banks as compared to Individuals.what's your say?  |
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Guest
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Wed Mar 04, 2009 10:58 am
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Hi Ensurepune
Banks do not have a credit report nor it is essential for the banks to get a higher credit score to get money as deposit from us and so there is no question of credit repair for banks. Now since the credit card holders and other borrowers of the banks are not able to repay back the existing debt, the banks do not have money to pay back the depositors and so they have to file bankruptcy. |
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ensurepune
Joined: 17 Feb 2009
ensurepune's page
Posts: 102
510 Magic Points
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carol
Joined: 27 Jun 2006
carol's page
Posts: 1307
Location: Los Angeles, California
29555 Magic Points
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Thu Mar 05, 2009 6:21 am
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Hi Ensurepune
Banks have so long been liberal in offering credit to customers just by checking the credit score. If a consumer had an excellent credit score, he wouldn't face any difficulty in getting a new line of credit at an attractive rate of interest. But thing is that, since the past does not always reflect the future, the person who used to have an excellent credit score may default on the present debts due spending over and above the limit he is able to repay through his present income source. Most of the banks have realized this mistake and are now in a process of lowering the credit limit for existing customers.
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Keep in touch
Carol |
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ensurepune
Joined: 17 Feb 2009
ensurepune's page
Posts: 102
510 Magic Points
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DEVID85
Joined: 05 Mar 2009
DEVID85's page
Posts: 23
2 Magic Points
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Thu Mar 05, 2009 10:20 pm
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| We need to refer this question to god. Most of the things lies the loan repayments. It includes ethics and unhandled issues like decreased property rates, sudden drops in markets etc. Untill there is fear of the recession this has to continue. What government can do is to patch up the problem. Though there may be cuts in bank rates, the banks have now tightened the hands to offer new loans. The businesses are less encouraged for expansions and this resulted in cut in the business for small vendors. Therefore the loans could not be repayed and the cycle continues...... What Obama team should try is to boost the confidence and ask for segregation of loyal and disloyal debtors. Loyals should be encouraged and the disloyals to be slapped (Poor repayments do not reflect loyalty!!), besides those packages to improve upon the situation. |
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