Hardening of the credit card arteries

[HarryBosch]

I caught this on the KCAL9 Los Angeles news broadcast the other night.

Most of this news clip talks about the drop in restaurant business, people tipping less and eating less. Which is not a surprise. But what caught my attention is that at the end of the news clip …

“One restaurant owner told them that the banks are taking longer to reimburse them when their customers charge their bills so pretty soon they’ll be telling all their customers that they can only tip (pay) with cash.”

http://cbs2.com/video/[email protected]

(copy and paste the URL – the ampersand makes the link think it’s an email link.)

This is the first I’ve heard of a restaurant switching to a cash only basis. Not because of bad credit but as a result of a hardening of the credit card arteries.

This is a new signpost of what lies ahead. Today its one restaurant, tomorrow all restaurants and then after that all goods and service businesses. Just trying to spot what lies around the curve in the road ahead.

[TheBreeze]

I bet the first restaurant that goes to cash only goes out business within a week.

[TheBreeze]

I bet the first restaurant that goes to cash only goes out business within a week.

[TheBreeze]

I bet the first restaurant that goes to cash only goes out business within a week.

[TheBreeze]

I bet the first restaurant that goes to cash only goes out business within a week.

[TheBreeze]

I bet the first restaurant that goes to cash only goes out business within a week.

[HarryBosch]

I’m sure the restaurants – and businesses and customers – will figure out that cash only means debit cards so as to decrease the chance of cash only robberies.

The real point I was trying to make was that up until now I had only heard of the “credit market squeeze” in terms of home loans, HELOCs, car loans, etc. It hadn’t really affected me or most people who were not in the market for home loans, refis and car loans.

But with this business going to a cash only basis – and more to follow – I now have a tangible impact of the “credit market squeeze”, of the credit markets freezing up that will affect me and many more households.

Once that impact of a credit market squeeze/freeze is felt by a wider amount of people then I would expect more people to start hoarding cash. Expect a slow run on the banks to begin and then accelerate as more people begin to see what is going on. Wait until that happens. You ain’t seen nothing yet.

The financial environment is changing right before our eyes. What it will be, and what our lives will be like when it is over, is left up to our imagination.

[HarryBosch]

I’m sure the restaurants – and businesses and customers – will figure out that cash only means debit cards so as to decrease the chance of cash only robberies.

The real point I was trying to make was that up until now I had only heard of the “credit market squeeze” in terms of home loans, HELOCs, car loans, etc. It hadn’t really affected me or most people who were not in the market for home loans, refis and car loans.

But with this business going to a cash only basis – and more to follow – I now have a tangible impact of the “credit market squeeze”, of the credit markets freezing up that will affect me and many more households.

Once that impact of a credit market squeeze/freeze is felt by a wider amount of people then I would expect more people to start hoarding cash. Expect a slow run on the banks to begin and then accelerate as more people begin to see what is going on. Wait until that happens. You ain’t seen nothing yet.

The financial environment is changing right before our eyes. What it will be, and what our lives will be like when it is over, is left up to our imagination.

[HarryBosch]

I’m sure the restaurants – and businesses and customers – will figure out that cash only means debit cards so as to decrease the chance of cash only robberies.

The real point I was trying to make was that up until now I had only heard of the “credit market squeeze” in terms of home loans, HELOCs, car loans, etc. It hadn’t really affected me or most people who were not in the market for home loans, refis and car loans.

But with this business going to a cash only basis – and more to follow – I now have a tangible impact of the “credit market squeeze”, of the credit markets freezing up that will affect me and many more households.

Once that impact of a credit market squeeze/freeze is felt by a wider amount of people then I would expect more people to start hoarding cash. Expect a slow run on the banks to begin and then accelerate as more people begin to see what is going on. Wait until that happens. You ain’t seen nothing yet.

The financial environment is changing right before our eyes. What it will be, and what our lives will be like when it is over, is left up to our imagination.

[HarryBosch]

I’m sure the restaurants – and businesses and customers – will figure out that cash only means debit cards so as to decrease the chance of cash only robberies.

The real point I was trying to make was that up until now I had only heard of the “credit market squeeze” in terms of home loans, HELOCs, car loans, etc. It hadn’t really affected me or most people who were not in the market for home loans, refis and car loans.

But with this business going to a cash only basis – and more to follow – I now have a tangible impact of the “credit market squeeze”, of the credit markets freezing up that will affect me and many more households.

Once that impact of a credit market squeeze/freeze is felt by a wider amount of people then I would expect more people to start hoarding cash. Expect a slow run on the banks to begin and then accelerate as more people begin to see what is going on. Wait until that happens. You ain’t seen nothing yet.

The financial environment is changing right before our eyes. What it will be, and what our lives will be like when it is over, is left up to our imagination.

[HarryBosch]

I’m sure the restaurants – and businesses and customers – will figure out that cash only means debit cards so as to decrease the chance of cash only robberies.

The real point I was trying to make was that up until now I had only heard of the “credit market squeeze” in terms of home loans, HELOCs, car loans, etc. It hadn’t really affected me or most people who were not in the market for home loans, refis and car loans.

But with this business going to a cash only basis – and more to follow – I now have a tangible impact of the “credit market squeeze”, of the credit markets freezing up that will affect me and many more households.

Once that impact of a credit market squeeze/freeze is felt by a wider amount of people then I would expect more people to start hoarding cash. Expect a slow run on the banks to begin and then accelerate as more people begin to see what is going on. Wait until that happens. You ain’t seen nothing yet.

The financial environment is changing right before our eyes. What it will be, and what our lives will be like when it is over, is left up to our imagination.

[EconProf]

The hoarding of currency is a very real possibility. Besides some people being unable to use credit cards because they’ve ruined their credit, if enough people expect a switch to survival mode, everyday transactions cannot easily be handled by barter or precious metals.
While I don’t expect any such doomsday scenario, what counts is people’s expectations, and it would take only a small % of the population to have such an expectation and to act on it to deplete our currency supplies.

[EconProf]

The hoarding of currency is a very real possibility. Besides some people being unable to use credit cards because they’ve ruined their credit, if enough people expect a switch to survival mode, everyday transactions cannot easily be handled by barter or precious metals.
While I don’t expect any such doomsday scenario, what counts is people’s expectations, and it would take only a small % of the population to have such an expectation and to act on it to deplete our currency supplies.

[EconProf]

The hoarding of currency is a very real possibility. Besides some people being unable to use credit cards because they’ve ruined their credit, if enough people expect a switch to survival mode, everyday transactions cannot easily be handled by barter or precious metals.
While I don’t expect any such doomsday scenario, what counts is people’s expectations, and it would take only a small % of the population to have such an expectation and to act on it to deplete our currency supplies.

[EconProf]

The hoarding of currency is a very real possibility. Besides some people being unable to use credit cards because they’ve ruined their credit, if enough people expect a switch to survival mode, everyday transactions cannot easily be handled by barter or precious metals.
While I don’t expect any such doomsday scenario, what counts is people’s expectations, and it would take only a small % of the population to have such an expectation and to act on it to deplete our currency supplies.

[Author]

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