Originally Posted by
ETWolverine
Spit,
Because credit card execs don't take the advice of credit analysts. They see their industry as if it were under the same conditions as early 2007. They think that if they raise rates, they'll lose a few customers, they'll have to deal with a few delinquencies, but they'll see a 60% increase in credit card incomes.
What they are missing is the fact that their delinquencies won't increase just a little bit, but rather by a HUGE amount that will cripple those credit card companies. And they won't lose a few customers, they are going to lose their best customers in droves. The economic pressures are completely different from what they were 2 years ago, but the execs can't see that. Or they may see it, but they can't internalize it. They see the possibilities of profits, but they can't see the trap they are setting for themselves. And credit analysts in some back office earning $60K - $80K a year don't exactly have the ear of the President of B of A who is earning that about every two weeks or so. They don't live in the same worlds, and they don't talk to each other.
Elliot
