JPMorgan, the man who encouraged lending

During the last major financial meltdown or depression, JPMorgan, the man who encouraged lending by laying down the gauntlet to his peers, single handedly stimulated the economy. He knew that the severe times dictated new and severe lending techniques.

 

I believe there is going to be an even LARGER backlash to Chase and American Express and other credit card lending institutions, that continue in the business of credit card lending, and continue alienating the high FICO borrowers.

 

From what I have personally observed during the past 30-years or so of credit card facilities and lending is that the high FICO score small-business and individual borrowers that were offered 2% (without any origination fee nor security) promo offers are being targeted by the lenders. The target is to recoup as much money the lenders can from those high FICO borrowers, since they cannot obtain anything from the low scores.

 

Basically, the same way the government taxes or penalizes those high revenue earners and does this via the tax system.

 

The backlash that I have spoke of is that these here-to-fore high FICO borrowers are very tired of being taken advantage of. Where will you see a forum whereby a 5% principal repay is necessary per month?

 

So... the folks that have always been responsible for thier investing, borrowing, saving, mortgages and overall finances are now using web sites such as PayPal.com, prosper.com, StockClub.TheFutureWay.com and bank debit card accounts to eliminate once and for all the big-time bank credit card lender fees, but still have the convenience of Visa or Mastercard network transactions.

 

I am somewhat reminded that we are being pushed to the limits of the Ayn Rand Objectivism philosophy for living on earth.

 

With all the incredible online high-tech systems available at extremely low costs, I think we will see more and more peer-to-peer types of lending and investing syndicates.

 

Therefore, in the very near future, the large bank credit card lending portfolios will have MUCH LOWER FICO borrowers, and MUCH LOWER repayment.