Credit card companies raising rates without notice – what is the effect on the economy, stocks and bonds
Peter Oberois
Apr. 29, 2007

The credit squeeze is on. The credit card companies are raising their rates silently; rates go as high as 29.99% easily without any notice. The Fed is watching helplessly as these loan sharks make the economy collapse. Big name banks have joined the scam too. Watch your credit card bill and look for the effective APR at the end of the statement.

As Banking collapse is going to take place these loan shark banks are going to take on you if you have any loan. The effect on the economy is severe. This is exactly what is creating the deflation. Remember in the first week of Iraq war things were on the ‘high’ and the defense secretary was talking about “shock and awe”. The stock market is in similar situation. The Wall Street highs are creating shock and awe in bear market arena. But fundamentals, inefficiencies and basic truth finally come back. Three years from today financial markets will be in deep turmoil – much worse than Iraq.

How high can Dow go? As much as the hedge funds and their billion will take it to. But sooner or later the deflation will take it down where it belongs – far bellow 7000. The bond market is ready to explode on the upside as economy tanks faster than Fed can ever think of. The dollar (more sensitive than bonds) is already showing signs of oncoming depression in the economy.

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Credit card companies raising rates without notice – what is the effect on the economy, stocks and bonds
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How high can Dow go? As much as the hedge funds and their billion will take it to. But sooner or later the deflation will take it down where it belongs – far bellow 7000.
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