“Seventy percent store-bought, ready-made plus 30 percent fresh allows you to take 100 percent of the credit.” MadeReadyPercentCreditStoresPlusSeventies Author:Sandra Lee
“Given all the money printing that is going on globally - and not just in the US - and given that the total credit as a percent of the advanced economies is now 30% higher than in 2007 before the crisis hit, I think that gold is a good insurance.” ThinkingGivenEconomyHigherPercentGoldCrisisCreditPrinting Author:Marc Faber
“If your credit is going to grow at 10-15 percent per year in order to get your 5 percent GDP growth per year, eventually you're going to have a problem. This isn't a stable system.” IfsYearsProblemOrderGrowsGrowthPercentCreditStableGdp Author:Adair Turner, Baron Turner of Ecchinswell
“If you have loans, the first thing you want to do is say, "Okay, look I have a credit card, if I really need to borrow, I have this emergency money that I can get, but for now there is no reason for me to keep cash at zero percent interest rate and at the same time, pay all of this money out. So, I think people need to figure out quickly how to pay loans and how much cash they should really keep.” PeopleIfsThinkingWantNeedsShouldFirstsLooksI CanReasonInterestPayFiguresPercentOkayRateCreditCardsNo ReasonZeroCashEmergenciesLoanCredit CardInterest Rate Author:Dan Ariely
“A cash advance on a credit card is one of the worst types of borrowing because the interest rate is typically 21 percent or more.” InterestWorstTypePercentRateCreditCardsCashCredit CardBorrowingInterest Rate Author:Suze Orman
“he economy favors throughput over quality and craftsmanship, and economists are terrified because the American savings rate has crept upward from about zero to almost five percent. But the mortgage crisis and the burgeoning credit card crisis are causing Americans to become wary of irresponsible debt.” QualityEconomyFivePercentCrisisRateCreditDebtFavorsCardsSavingZeroTerrifiedEconomistSavingsIrresponsibleMortgageCredit CardCraftsmanshipMortgage Crisis Author:Denis Hayes
“If you have credit card debt and credit card companies continue to close down the cards, what are you going to do? What are you going to do if they raise your interest rates to 32 percent? That's five times higher than what your kid is going to pay in interest on a student loan. Get rid of your credit card debt.” IfsKidsInterestPayCompanyFiveStudentsHigherPercentRaisesRateCreditDebtCardsLoanCredit CardInterest RateStudent LoanCredit Card Debt Author:Suze Orman
“If your company matches your 401(k) contribution, then no matter what, contribute to your 401(k) first. You put in a dollar, they put in 50 cents. It's an automatic 50 percent return on your money. You can't pass that up. I'd rather have the 50 percent than pay 32 percent interest on a credit card.” IfsFirstsMatterInterestPayCompanyReturnPercentNo Matter WhatDollarsCreditCardsContributionCentsCredit Card Author:Suze Orman
“Everybody would be better off if they could buy housing for only, let's say, a carrying charge of one-quarter of their income. That used to be the case 50 years ago. Buyers had to save up and make a higher down payment, giving them more equity - perhaps 25 or 30 percent. But today, banks are creating enough credit to bid up housing prices again.” IfsGivingYearsEnoughWould BeTodayUsedCasesHigherCreatingPercentYears AgoCreditIncomeUsed To BeQuartersBetter OffEquityHousingPaymentBuyers Author:Michael Hudson
“If you have to pay about forty to forty-three percent of your income for housing, you also have to pay fifteen percent of your paycheck for the FICA for Social Security wage withholding. You have to pay medical care, you have to pay the banks for your credit card debt, student loans. Then you only have about twenty-five or thirty-five percent, maybe one-third of your salary to buy goods and services. That's all.” IfsCareThreeSocialPayFiveSecurityStudentsPercentThirdsTwentiesCreditDebtMedicalIncomeCardsThirtyFortyGoodsFifteenSocial SecurityHousingLoanSalaryCredit CardTwenty FivePaychecksMedical CareGoods And ServicesWithholdingStudent LoanCredit Card Debt Author:Michael Hudson
“[People] have seen the credit market seize up. They're worried about money market funds, although the latest proposition from government should take care of that. They've seen eight percent of the bank deposits in the United States get moved very skillfully, I might say, within the last couple of weeks from institutions that they thought were fine a few months ago to other institutions. They are not wrong to be worried.” PeopleShouldStatesGovernmentMightCareLastsUnitedUnited StatesWeekFineMonthsCouplePercentInstitutionsMovedEightCreditTake CareWorriedFundPropositionsDeposits Author:Warren Buffett
“A possibility is that we see more and more leverage, and credit-to-GDP ratios rise once more to even higher levels; eventually the banking systems of all advanced economies reach magnitudes of 500 percent, 1000 percent or more of GDP, so that every economy starts to have financial systems that resemble recent cases like Switzerland, Ireland, Iceland, or Cyprus. That might be a very fragile world to live in.” WorldMightLevelsCasesEconomyPossibilityHigherPercentFinancialCreditFragileIrelandBankingMagnitudeHigher LevelRatiosSwitzerlandGdpBanking SystemFinancial SystemIcelandCyprus Author:Alan M. Taylor
“Most of the productivity gains appear to go to the top 1 percent. Most people don't have enough income and as a result, they borrow additional money by using their credit card and they fall into high debt. The result of the growing income gap is a slower growing GDP (too few people with money to spend) and a rising tide of indebtedness.” PeopleEnoughFallResultsGrowingPercentGainsCreditDebtProductivityIncomeCardsRisingGapsTidesCredit CardGdpIndebtedness Author:Philip Kotler
“All they need to do is to set up some website somewhere selling some bogus product at twenty percent of the normal market prices and people are going to be tricked into providing their credit card numbers.” PeopleNeedsNumbersProductsNormalPercentTwentiesCreditSellingCardsProvidingWebsiteCredit Card Author:Kevin Mitnick
“Britain is a textbook case of how growing inequality leads to economic crisis. The years before the crash were marked by a sharp rise in remortgaging and the growth of 0% balance transfer credit cards. By 2008 the UK had the highest ratio of household debt to GDP of any major economy.” YearsGrowthCasesEconomyGrowingEconomicBalanceMajorsHighestPercentCrisisCreditDebtCardsInequalityBritainHouseholdCrashTransfersCredit CardTextbooksRatiosGdpEconomic Crisis Author:Frances O'Grady