Monday, December 15, 2008

Quote for the Day

Well, the day hasn't begun, but here it is:

What card issuers have really cared about for a very long time is _raising_ credit limits to boost throughput so they could pinch off more dough from the financial system. Yes, the _financial system_, which was the real customer for card issuers. We card holders are just hazel stumps to be coppiced and sold as wands for the magicians of finance.

-Commentor, Naked Capitalist

There are a lot of people stressed because the notes from the card companies make it sound like they did something wrong or could have done something better.

And, sadly, there are prominent, TV-enabled financial planners who encourage that view, if only because they get a lot of calls from people who really have not managed their credit well.

Anyway, ... I'd like to know who holds the residuals in the Card Master Trusts. I think the card companies take a hit in some of these securitizations - it's not just a pass off.

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