Peter Schiff comments last nightSubmitted by Laurie on Mon, 03/17/2008 - 15:19
They can be saved to your computer, as well.
- just before 5 minutes Schiff introduced
While listening to Peter Schiff last night on www.rprradio.com, two comments shocked me:
1. Americans won't be able to "retire" for a *generation or two*.
I assume that means that those who are 60 or older will no longer have paid-off houses plus an adequate pension plan to not require working.
However, no mention was made of age discrimination or competition with very cheap foreign labor in finding a job (if any will exist after this economy implodes).
Minimum wage jobs, anyone?
2. Credit card companies were slashing credit card limits (I believe he mentioned that his had been cut *in half*, likely due to his financial industry connections).
Look at the ripple effects of slashing credit card limits:
a. Since credit rating/FICO scores are largely based on the ratio of credit balances to credit limits, the FICO scores of all of those "customers" would plummet through no fault of their own.
- What happens to the ability to *rent* (if a landlord will even consider a tenant with a poor credit rating), let alone to buy?
- Some employers are now doing credit checks for potential employees.
Are these credit card companies harming the ability of people to get jobs *at all*?
b. As the financial institutions are finding out, *solvency* is the issue, not bankruptcy.
Somehow, I don't think those $800 checks would replace the total loss of remaining credit card limits *with no warning*, particularly with IRS tax payments and summer real estate tax payments coming due.
c. And with no consumer option of "borrowing from Peter to pay Paul" (at high cash advance rates), cutting credit card limits would trigger even *more* credit card defaults!