Credit Cards Bye Bye?

I'm not an expert (please don't tell anyone) about the credit system. All I know for sure is that if you don't need it you can get more than you want, but if you do need it you can't get it at all.



What does this failure of Wall Street mean?



Credit, ATM Use May be Imperiled

http://www.stamfordadvocate.com/localnews/ci_10597389
By Peter HealyStaff Writer
Article Launched: 09/30/2008 03:06:45 AM EDT



"The House's defeat of the government financial bailout plan and the ongoing financial crisis may soon mean your credit card won't work at the supermarket, department store or ATM."

....

"The more the liquidity is bottlenecked in the banking system, the greater the reluctance is for banks to lend and borrow from one another, which reduces credit availability to consumers and businesses, including something as mundane as a credit card," said John Carusone, president of the Bank Analysis Center, a banking industry consulting firm in Hartford. "

...

"The whole credit market is going to shrink," said Celente, director of the Trends Research Institute in Rhinebeck, N.Y. "That's because of all the gambling and speculation by real estate developers, individuals flipping houses, and assorted Wall Street gamblers playing risky financial games." "

.....

"Don't be surprised if there is a bank holiday (Tuesday) or some time this week," he said. "The worst is yet to come. We are telling people, 'Don't spend a nickel more than you have to. Save for a cold winter.' "

....

"Credit card debt typically is packaged and sold to investors such as banks, pension funds and insurance companies in a process called securitization.
But that credit card debt must pay a much higher price to find a buyer in today's economic turmoil, various published reports said Monday. "

...

"With credit becoming harder to get, "the consumer now needs to protect his existing open lines of credit," she said. "He would do that by never paying late and not making short payments. And you don't want to skip a payment."
Cunningham said "maxing out" one's credit cards to the credit limits enables card issuers to reduce customers' credit lines and/or triple the interest rates."





Well now , I guess that is lesson in Credit Card Debt 101. Now this comes from that risk management place Hartford Conn..

"Don't spend a nickle more than you have to..."

Now that is comforting isn't it.



Full Faith and Credit, no faith no credit!



Actually I still don't get the ATM thing yet? Is there someone out there that can show the direct connection. I mean aren't ATMs just electronic tellers? So are they saying you can't get an advance out of the ATM on a credit card? Are debit cards still kosher?