Then Came the Legions...

From History of the World Part I

The term legion refers to an army of over 5,000 soldiers. However, it is appropriate to make reference to the thousands and thousands of people who have written to the National Credit Union, The Federal Reserve Board, and the Office of Thrift Supervision. The legions of activists have noted the Federal government's blind eye toward credit card practices. The Truth in Lending Act has forced credit card companies to make some... some disclosures, but have not been as aggressive as some proponents would have it. Most voters will agree that people should service their debts, however, when it becomes a goal of one institution to enslave another with debt, then it becomes a platform for reform minded politicians. Big business donations be damned! As Americans feel the credit squeeze, there will be more attempts to attack credit card companies with legislation in the upcoming fall elections. (1) I am curious whether the attorneys that read this blog see any avenue for class action status against credit card companies.

Speaking of class action suits, share holders of Fannie Mae and Freddie Mac should start considering their options against the management and board of directors of these once revered institutions. While there seems to be a constant flow of reassurance that neither of these companies will need to tap the Federal Government's bailout money, many investors just don't buy it. While there have been no reports of a lynch mob... at least not yet, it is apparent that whatever hand Fannie and Freddie are forced to take, the shareholders are going to be left holding the bag. (I just hope the shorts who have gutted this one out will collect before the shares become worthless.) (2)

Capital One was CLOBBERED in after-hours trading down almost 5% on continued concern over credit risks. According to one group of analysts marked COF as an, "Under-perform" or "Sell" rating and $33 target price on the stock, citing concerns over the weakening credit trends in the company's auto finance and international portfolios. (3) But that really shouldn't bother the bear market bulls, I'm sure they are hoping and praying that there will be a bailout for auto loans and credit cards underwriters. What's fair is fair right? Then came the legions of consumer complaints... and no legislator in their right mind will protect these characters.

Commodity Watch
Continue to follow the trend between the strengthening dollar are the decline in oil and gold... Remember three points:
1. Russians in Georgia (with a naval fleet near the "pipeline").
2. Iran with rocket capability.
3. OPEC meeting in September.

Sources Cited
1.Kovac, Marc Request for credit card companies generates lots of interest.
http://www.ncua.gov/indexdata.html
2.http://topics.nytimes.com/top/news/business/companies/fannie_mae/index.html?inline=nyt-org
3.http://news.moneycentral.msn.com/provider/providerarticle.aspx?feed=AP&date=20080818&id=8993751