Tin-foil helmet question: Would banks freeze everyone's credit to force a taxpayer-funded bailout?

brentspeak

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Mon Sep-29-08 04:23 PM
Original message

Tin-foil helmet question: Would banks freeze everyone's credit to force a taxpayer-funded bailout?

Suppose the execs of Citi conference call the execs of Chase and Bank America, and they're all pi$$ed off that $700+ billion won't be coming their way. They then decide -- "Hey! Let's freeze everyone's credit cards until they cry 'uncle'! That'll do the trick."

I mean, what's to stop them?

:tinfoilhat:

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ddeclue

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Mon Sep-29-08 04:24 PM
Response to Original message

1. That's largely already happened

with mortgage LOC's and car loans.

It's a little late at this point for that to matter.

It's end game time.

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Venceremos

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Mon Sep-29-08 04:29 PM
Response to Reply #1

10. Excuse me?

I have been getting offers all week from my mortgage company to get another loan. I got the latest one through email a couple hours after the bailout bill failed.

Where are you getting your doomsday info? From Bush or the talking heads on the teevee?

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nadinbrzezinski

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Mon Sep-29-08 04:32 PM
Response to Reply #10

13. It depends on YOUR BANK

but we have reports that credit has been freezing for months

Read bellow on THIS thread.

Jeebus if you have an offer right now does not mean that everybody is.

Or that it will continue

Oh and offer does NOT guarantee you'll get the loan at this moment

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ddeclue

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Mon Sep-29-08 04:36 PM
Response to Reply #10

16. Teeveee news...

Credit card offers in the mail don't mean much...give it a few weeks for them to shut down the printing and mailing..

Doug D.

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RollWithIt

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Mon Sep-29-08 04:24 PM
Response to Original message

2. As a small business owner (Retail) I've already been informed my credit lines are being suspended...

And I'm profitable. Basically that means I have to lay people off starting next week.

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nadinbrzezinski

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Mon Sep-29-08 04:27 PM
Response to Reply #2

9. I'm sorry to hear that

best of luck

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Virginia Dare

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Mon Sep-29-08 04:38 PM
Response to Reply #2

17. I urge you to put that in it's own thread for the naysayers..

there are lots of people here who don't believe it will happen. It sounds like it already is.

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RollWithIt

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Mon Sep-29-08 04:24 PM
Response to Original message

3. As a small business owner (Retail) I've already been informed my credit lines are being suspended...

And I'm profitable. Basically that means I have to lay people off starting next week.

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nadinbrzezinski

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Mon Sep-29-08 04:24 PM
Response to Original message

4. the credit market is already freezing

I could try to 'splain the reasons, but I guess it will only be tin foil to you

I know that JOBS are now at risk as companies cannot get credit

Hope that makes you happy

Oh and here you go,

:tinfoil: :tinfoil: :tinfoil:

:banghead:

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dipsydoodle

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Mon Sep-29-08 04:25 PM
Response to Original message

5. Some form of retaliation is of course possible

but I doubt it would come from the credit card companies. If they tried that stunt I'd guess that everyone would simply refuse to pay there monthly whatever.

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OmahaBlueDog

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Mon Sep-29-08 04:25 PM
Response to Original message

6. You still have to do business. Freezing credit would cost banks enormously

...and people have long memories about being screwed where money is concerned. If banks tried that, the political fallout could blow back on them big time.

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Fresh_Start

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Mon Sep-29-08 04:26 PM
Response to Original message

7. for months, banks have been reducing peoples credit

even before the failures of the investment banks
it is likely to accelerate with the liquidity issues and the bank failures

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shadowknows69

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Mon Sep-29-08 04:26 PM
Response to Original message

8. That's the underlying threat if I understand it.

I don't see the logic of stopping your own revenue stream

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dkofos

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Mon Sep-29-08 04:29 PM
Response to Original message

11. If they think that is what it will take to get what they want they may try.

The fed could unfreeze them just as fast.

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SammyWinstonJack

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Mon Sep-29-08 04:30 PM
Response to Original message

12. Does a bear shit in the woods?

:evilgrin:

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Greyhound

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Mon Sep-29-08 04:32 PM
Response to Original message

14. They will try, but the Fed has the authority to force the processes to continue,

and if those that run the Fed don't act, the Congress has the authority to appoint those who will.

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marshall

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Mon Sep-29-08 04:35 PM
Response to Original message

15. The smart move would be to wean oneself off credit

I use one credit card, but I pay it off every month. If they freeze my credit line I'll just switch to a debit card. I won't get the frequent flyer miles but that's the only difference it will make.

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Virginia Dare

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Mon Sep-29-08 04:39 PM
Response to Original message

18. I think that is in essence what the Chinese are doing to us right now..

I think that's largely what is behind the rush by Congress to do something. It's a big problem.

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