"Free Money"

edited November 2007 in Housing Bubble
I think the story linked below epitomizes the attitude towards credit that helped drive the bubble:

http://www.wisn.com/news/14697601/detail.html
Two employees confirmed for police that anyone who applied was being given instant credit -- from $850 up to $4,000. They also told police that people started calling other people to the store for so-called free money. The store ran out of credit applications.

The end result wasn't much different either:
The store did put a stop to it, though. There are signs on the door saying it is not processing credit card applications at this time.

The big difference, of course, is that there isn't a resale market inside a Kmart. With no way to paper over the inevitable losses, the bank pulled the plug a lot quicker.

Comments

  • Nice find RottedOak. As a slimy renter, I am bombarded by credit offers, and the limits on cards I already have seem to go up by a few thousand every month. Apparently it is now acceptable to start a fight when you are granted credit.

    I guess I should use some of my 'free money' to buy boxing gloves so I'll be ready next year when my limits go up again.

    Hooyah!
  • I pay it off every month and they stop giving me more credit now, bastards!
  • Nice find RottedOak. As a slimy renter, I am bombarded by credit offers...

    If you don't want to get the mail, try the steps below. It does reduce the number of credit card offers you get.

    http://www.ftc.gov/bcp/conline/pubs/cre ... creen.shtm

    Can I reduce the number of unsolicited credit and insurance offers I get?

    If you decide that you don't want to receive prescreened offers of credit and insurance, you have two choices: You can opt out of receiving them for five years or opt out of receiving them permanently. Call toll-free 1-888-5-OPTOUT (1-888-567-8688) or visit http://www.optoutprescreen.com for details. The telephone number and website are operated by the major consumer reporting companies. When you call or visit the website, you'll be asked to provide certain personal information, including your home telephone number, name, Social Security number, and date of birth. The information you provide is confidential and will be used only to process your request to opt out.

    Remember that if you have joint credit relationships, like a mortgage or a car loan with a spouse, partner, or other adult, you may continue to receive some prescreened solicitations until both of you exercise your opt-out right.
  • I was exaggerating the number of offers I receive, as I have already 'opted out'. But I do still occasionally receive offers from banks I have other working relationships with. And I guess to some people, that would be free money.
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