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For others like me that have never heard of CIT and have no idea what they do, here ya go.
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@dohtem: I noticed one thing the Wikipedia Article and most US Media has not reported on is that CIT owns CIT Bank in Utah that does Bill Me Later as well financing agreements such as NewEgg Prefered. So its just not business financing, there is also quite a large amount of consumer financing that allows people to buy on credit.
So maybe this will force retailers to stop churning out season after season of ugly disposable quality clothes?
I am assuming this means lots of stores will be closing instead. Does anyone know if they fund large sectors of retail people actually need like food stores?
I do believe that CIT is the provider of Dell Financial Services (DFS). Let's stop paying those bills to get our bailout back (which now won't be repaid).
@wvFrugan: No...it's cool...they'll just print more money...you know...until we run out of cotton. (They make currency from cotton correct?!?) Then we'll just start printing bills with chairman mao on the front.
@ogsoleysol:
That's a Canada link. I was unable to find anything under the US pages. Is CIT also providing the DFS financing in the US?
@wcnghj:
Might be why I haven't seen one. Did HSBC or GEMB used to provide DFS financing? Swear I've seen a HSBC/DFS tradeline or two in my time.
@wcnghj:
You must have missed my post on anotherthread about how to take advantage of your BAD credit report! Have bad credit already and a DFS/CIT account? Go ahead and screw 'em, they already screwed you the taxpayer already! No moral proble here!
You need to learn that many do not give a fuck about the enslavement big business wants to create with all these recording/reporting groups.
@wvFrugan: If they are fully closing their doors and not reorganizing doesn't everyone who they owed money to just lose out? There may be some merit in not sending in a payment to a company that no longer exists.
Yeah! No more (okay...maybe less) douchebag t-shirts at retail! There's going to be a lot of depressed guidos on long island come Christmas.
Well, to kill two birds with one stone, maybe instead of clothes, you can get someone \"Meltdown\" by Dr. Thomas Woods, which explains why the bailouts will make the economic problems much worse.
@MooseOfReason: This is a fun game! Which \"the bailouts\" are you talking about? The 1966 credit crunch when the Fed intervened as the lender of last resort? The LBO bailouts of the 1980s? The S&L bailouts of the 1990s?
I am concerned that there is an idea floating around that (I assume) the 700Bn TARP bailout is somehow the only/first bailout.
The whole point of the Fed is to intervene as the lender of last resort, which it failed to do in the early 1930s, and indeed, the only reason we have avoided another depression in this country is as follows:
1. After the euphoric ramp up of the economy the bubble pops
2. This, left alone, causes a debt-deflationary spiral
3. The Fed intervenes as the lender of last resort and injects massive amounts of capital so companies can meet their payment obligations (the US is an economy of finance after all)
4. Inflation
5. Eurphoric ramp up
6. Goto 1
So yes, being too big to fail does indeed entitle that entity to a big bag of money, and yes, bailouts (all of them!) cause inflation. The thinking goes, however, that some inflation now is much better than a debt-deflationary spiral, which is the real cause of a depression.
@Excited_Utterance: Well, let's see. I mentioned a book that was released early this year, so I'm probably talking about bailouts that took place last year and into this year.
The Federal Reserve did not fail to intervene in the early 1930's. The Federal Reserve is what caused the depression in the first place. Read \"America's Great Depression\", or at least skim through it:
[mises.org]
Between 1921 and 1929, the Federal Reserve pumped credit into the economy, creating an artificial boom that subsequently led to a bust. The Fed caused the depression, they caused the dot-com bubble, and they caused the housing bubble.
Here's an article from August, 2003, warning of a housing bubble:
[mises.org]
Here's an explanation of how the Federal Reserve creates bubbles in the first place. It's called the Austrian Business Cycle Theory:
[mises.org]
You note the \"euphoric ramp up\" without realizing the Federal Reserve causes that ramp up through inflation of the money supply with cheap credit and artificially low interest rates.
@MooseOfReason: It seems to have just stopped the bleeding at that moment. Since nothing else has changed in a year it didn't solve anything. AIG should be sold off or shut down by now. Wall Street banks are back to their old tricks. No significant reform has been taken.
The whole system is massively screwed. Investment banking is still an unregulated game. We still have too many banks on the too big to fail list. GM & Chrysler are asking for more money and no plans to change tactics.
I see nothing that is going on today that could stop the collapse situation we had a year ago.
Then there is the screw the consumer side. Fixing the credit reporting and data collection side of things isn't even on the government's radar. Banks are finding newer and bolder ways to screw people.
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@bohemian:
President: \"Things look bleak for you, but you're too big to fail. Here, have a bag of money.\"
Banks: \"Sweet!! Too big to fail means we can do whatever we want, and when things get tough the government will give us a bag of money!!\"
Maybe if clothing retailers have less money they'll be more selective in their offerings.
Ha. Hahaha. Ha.
I think it would have been a good thing for CIT to fail early, if only for the reason that we tend to associate
Christmas/holidays with spending money and buying material stuff than with what the holidays are really supposed to be about.
My most stress free Christmas was 4 years ago in Europe where Christmas creep and television commercials blasting holiday sales was so low as to be almost a religious experience in itself.
\"What Would Jesus Buy\" is now the ultimate holiday movie, and quite prophetic since it filmed and aired long before this shopocalypse actually went down...
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I have to wonder why no one in power appears to have learned the lesson from AIG that \"too big to fail\" is \"too large to leave in existence at that size\"? Why was CIT left as the single major financier for retail, all this year?
@PsiCop: Because too big to fail means too big for competitors to grow into. It isn't that CIT doesn't have competitors, just that they can't grow fast enough. Though they are desperately trying.
Besdies while CIT may be bankrupt that doesn't mean they are pulling out of the market. There will still be loans next year.
@PsiCop: Because no one else wants the title. Retail financing is hairy in good times. Many of the borrowers are small to medium sized businesses and those are the riskiest, especially startups. CIT did factoring of receivables and provided inventory based loans to these borrowers when a traditional bank would not. Some competition would be great but I don't see who would fill that role. Maybe a new division of B of A (lol).