American Express CEO: People aren't using their credit

[The Straight Story]

American Express CEO Kenneth Chenault said affluent Americans are spending again but lower- and middle-class people are not, in part because they don't have access to credit. And those who do, Chenault said, are wary of using it because of uncertainty over the strength of the economy.

"Seventy-five percent of the credit out there is not being used," Chenault said. "We've got to solve this credit issue."

Obama created the competitiveness council last month, naming General Electric CEO Jeffrey Immelt as its head. The move came as Obama sought to increase his outreach to the business community and shift his economic policies from short-term stabilization to increasing employment. The economy and joblessness remain top concerns of many voters.

Immelt said the council plans to deliver recommendations to the president within 90 days. The White House said the council will hold its next meeting outside of Washington as part of an effort to draw ideas from business owners and workers across the country.

http://news.yahoo.com/s/ap/us_obama_economy

[CBGLuthier]

1. Leaches have to live too.

[phantom power]

2. Perhaps re-inflating the bubble is not a "solution," Kenneth.

:eyes:

[luvspeas]

3. small violin symphony...

:nopity: :nopity: :nopity: :nopity: :nopity: :nopity: :nopity: :nopity: :nopity: :nopity:

[MadHound]

4. Poor baby, he's not getting his bonuses like he used to

No sympathy, none. First of all, it banks and corporations that originally foisted consumer credit on us as a viable way of living our lives, a huge mistake. Now when the people are finally waking up to the fact that they've been had, he's complaining about the lack of suckers.

Cut up your credit cards, starve these beasts.

[hedgehog]

5. So lower class and middle class people are smarter than anyone gave them credit for -

(so to speak!)

Who knew!

One little 3rd degree burn and they stay away from the fire!

[Dappleganger]

6. We don't want more credit, we want decent jobs and benefits.

[Brickbat]

7. Oh, come on. It's not a "credit issue" that needs to be "solved."

It's a profit issue for his company, pure and simple.

[meegbear]

19. +1

[PoliticAverse]

23. People not using their credit cards _is_ solving the 'credit issue'... n/t

[Brickbat]

27. Ha! Exactly.

[joeybee12]

8. Hey kenneth D**w*d, it's easy to solve the problem...stop creating so much

job uncertainty and stop shipping jobs overseas.

[HereSince1628]

9. Suppose he can make the link? Consumers need JOBS?

They aren't going to spend when they can't pay down their credit cards. The Banksters killed the goose that laid golden eggs all over the world.

I'd love it if this jobless recession killed the usurious consumer credit industry all together.

[Lyric]

10. I have never and will never use a credit card.

If I need to buy something online (which is pretty effing rare) I can load cash into a prepaid card and use that. I don't even have a checking account--just savings. God knows I've made a million mistakes in my life, but I am grateful every day that getting sucked in by credit card companies was never one of them. I feel nothing but compassion for the people suffering under that yoke now.

[Angry Dragon]

11. Maybe he should run about $2 billion of ads

telling the monied people to spend more on their credit cards so he can justify his job.
He sure does not justify it with his stupid reasoning

[joeunderdog]

12. I thought that WAS the solution to the credit problem.

Er, not over-extending, that it.

Let's take up a collection, shall we? :nopity:

[PA Democrat]

13. Face it Kenneth, Americans just aren't that into you

and your thieving ways.

[Poboy]

14. American Express , Eat shit fuckers. lol!

I have an AMEX card that can carry a balance. Cardholder for 8 years, NEVER late.
They raised the interest from 8% to 16% about 10 months ago. "Cost of doing business was evaluated and we had to raise rates" I was told. I replied, 'well, I will have to evaluate my cost of doing business with you'.
I did a zero interest balance transfer, and haven't charged anything on the card since, HA!
Now I might buy ONE tank of gas and pay it off just so they don't close the account. My thinking is it costs them to keep the account open.

EAT SHIT AMEX!

[AmandaRuth]

15. eventually the long term depression of wages

(and busting of unions) is going to come show up in national stats. People that make $24,000 or 30,000 a year are spending their money on food and gas. duh.

[eleny]

16. The disconnect - it hurts

[sufrommich]

17. I haven't had a credit card in years. If I can't afford it, I don't buy it. nt

[Proud Liberal Dem]

18. I would be using my American Express card more (maybe)

if they hadn't arbitrarily cut my credit limit down. Idiots. :eyes:

[ejpoeta]

20. we are being very careful with our credit cards. I admit i ran up my walmart card

but it is now locked away in the safe. We just bought stuff to work on the house at lowes with 18 months free interest and are getting 10% more by putting it on a card. but we have it all planned out already and should have it paid off by next tax season. People are wary of using credit because a)who has money and b)what if they lose their jobs!!

[MorningGlow]

21. Damn right we're not

Not after the last round of consumer abuse (fixed-rate suddenly changed to variable-rate, ridiculous increases in the interest rate for one tiny transgression, etc.) Unfortunately we have a sizable balance on a Bank of America card (:puke:) but we're not using it--just working hard to pay it down. It's a shame that means no trip to Florida to visit MG Jr's grandma this year, but that's just the way it is.

[joeunderdog]

22. What if Wisconson Union members can no longer buy widgets?

Do they think the dismantling of the middle class happens in a vaccuum?

At some point, big business will realize that they've gone too far. By then it will be too late for all of us.

Invest in America and what made us great. Stop dismantling Democracy.

[gratuitous]

24. People who don't have money don't buy anything

How did these plundering motherfuckers overlook that little detail on their way to the Rebirth of the Robber Barons?

[Little Star]

25. Memo to American Express CEO Kenneth Chenault:

In order for your business to be successful again you need to stand with Labor. No jobs, no living wages, no middle class will equal no customers for you, ass-wipe!

[MilesColtrane]

26. That's what happens when you double and triple the interest rate you charge to borrow.

These banks were in such a hurry to recoup any fees they would lose from the passage of the Credit Card Accountability, Responsibility and Disclosure Act they jacked up their interest rates to the point that nobody wants to borrow.

This apparently astonishes the idiots making those decisions.

[steve2470]

28. Memo to Mr. Chenault: Americans aren't as stupid as you think ! nt

[DBoon]

29. thanks to "bankruptcy reform"

You make it painful for people to discharge their debts and guess what, they stop borrowing so much

[SoCalDem]

30. "..."We've got to solve this credit issue."..."

:rofl:

Um... It looks like the PEOPLE have solved (or are in the process of solving) "the issue"..

Maybe they are tired of being played for chumps, and have decided that having a few bucks in the bank is a better idea than buying all that unnecessary shit with your plastic card:)

[Scout]

31. we have been credit card free for over a year....

and i plan to stay that way.

we're in a debt management program with Greenpath, and it's working well.

it is VERY difficult to get used to not using your credit cards for anything ... but i'm glad we are doing it. and when we're done, we'll have over $1,000 per month to save, spend, invest.

we're trying to get by on our two old jeeps and avoid having car payments again too. not interested in buying a new vehicle at all, and maybe not even a used one either until we absolutely MUST.