EBT and Debit Down For Major Grocer

how does it work when credit is used from a bank account?

is that the banks line of credit being used for your bank account?

and if thats the case, does it work like it works for us - we have a line of credit with a minimum to pay on a monthly basis?

And if thats the case - does that mean the money that gets taken from my account goes directly to the the establishment I "spent" the "money" at or does it go to a fund within the bank - while the bank is just paying minimums on its line of credit?

how does it work when credit is used from a bank account?

is that the banks line of credit being used for your bank account?

and if thats the case, does it work like it works for us - we have a line of credit with a minimum to pay on a monthly basis?

And if thats the case - does that mean the money that gets taken from my account goes directly to the the establishment I "spent" the "money" at or does it go to a fund within the bank - while the bank is just paying minimums on its line of credit?

they actually make money off of you. did you see the link put up yesterday about 'floating funds?' this whole thing could very well be a stalling tactic and a lowdown ploy for the banks to get as much out of us as they can before d-day. that'd be, $-day in this case.

IT'S A SCAM.

[link to en.wikipedia.org]

Thread: Food Stamp Shutdown Statewide California

for cross reference

Appreciated!

Anyone recieving EBT from Cali wanna check in? As far as I know there hasn't been any problems with debit in Cali(per this thread) but I didn't see anything about EBT?

Anyone care to report?

Much appreciated in advance! Peace and love!

Hello Anne,

I was just doing a little research into this, and while I am actively monitoring to see if it possible fallout from the european crisis (or a Lehman default which may have already occurred in a non transparent market like China) after spending a few hours I don't think so

I do believe the system may have been compromised in some way, perhaps by a hacker, and that the shutting down of the debit system is protective...to prevent the hacker from accessing accounts

We'll know more on Monday, of course

In 2008, in the weeks right after the Lehman collapse, commercial paper had also seized up and there was real fear in the credit markets. I figured at one point we were perhaps days from the system seizing up.

I ran a chat group of futures traders at the time, and I remember popping in at 10 pm one night, and members from some small towns in southern states (Florida, Louisiana, South Carolina, Georgia) were exchanging notes on how far they had to drive to find gas

I was pretty surprised that they were so non chalant about it, but apparently many gas stations were putting up signs saying no gas. The average drive was 2 hrs for gas per the members

IMHO this was the first sign of the depending crisis, as short term debt became unavailable and the smaller independent stations were unable to get an advance on receivables to fund new purchases of fuel

Supermarkets would no doubt have been next

Now that said, and while I'm not panicked by the debit card problems around the country and the world, I will say this

in 2008, we knew there were confidence problems, because Libor rates were at records, the VIX was on a tear, and all similar monitors of fear were pinning red

Now, those instruments are being manipulated to hide any signs of rising risk in the market. Zero hedge will make snide comments throughout the day about Libor rates unchanged in 3 months despite obvious stress in the system from Spain, Italy and Greece. There is a suit going on alleging Libor/OIS price fixing by UBS employees. The VIX is being manipulated through purchases of futures

So, anything is possible, but I suspect it is more likely at the moment to be a hacker and breach of the pin-based payment systems

Not that a banking crisis isn't in our future. I just don't think that time is quite yet

jmho!

Consumer debt continues to climb to unsustainable levels, yet investors being given mixed messages depending on their news source and their ability to think critically

One of these headlines is not lilke the other:

Major news source:

Consumer-debt bonds remain safe haven amid euro crisis

NEW YORK, June 22 (IFR) - Issuance of bonds backed by US consumer debt payments such as auto loans, student loans and credit card debt has reached its highest level since the onset of the financial crisis.


MEANWHILE in Canada and elsewhere:

Consumer debt burden swells to record as incomes lag
MICHAEL BABAD
The Globe and Mail
Published Friday, Jun. 15 2012, 7:51 AM EDT

The debt burden among Canadians is swelling, not because they're borrowing that much more, but because their disposable income isn't rising faster.

The debt-to-disposable income ratio climbed in the first quarter of the year to a record 152 per cent, from 150.5 per cent in the fourth quarter of last year.

[link to www.theglobeandmail.com]

[link to dnbsmallbusiness.com.au]

Australian finances under pressure despite 20-year high in household savings

A lack of personal savings has six in ten Australians concerned about their current financial situation and one in three indicating they would be unable to cover basic expenses for longer than a few weeks if faced with a sudden job loss.


[link to news.xinhuanet.com]

S.Korea's household debt market vulnerable to financial shocks: Moody's
English.news.cn 2012-06-19 14:50:11

SEOUL, June 19 (Xinhua) -- South Korea's household debt market is vulnerable to financial shocks arising from Europe's debt crisis and China's economic slowdown, the global credit rater Moody's said Tuesday.

"Korean household loans have been growing at an alarming rate. These household loans have characteristics that make them vulnerable to financial shocks and tail risks arising from the European debt crisis and China's economic slowdown," Marie Lam, a senior credit officer at Moody's in Hong Kong, said in a report.

The ratio of household debt to disposable income came in at 135 percent in 2011, higher than 114 percent in 2002, when the country's massive lending boom in credit card debt led to the credit card crisis in 2003.


[link to www.chinapost.com.tw]

S. Korea household debt grows at 'alarming rate'

SEOUL -- South Korea's household loans have grown “at an alarming rate” to US$553 billion in April and are vulnerable to financial shocks arising from a global economic downturn, a report said Tuesday.

More people are borrowing just to meet living expenses and there is an increase in borrowers from the older age group and lower income group, said the report from Moody's Investors Service.

[link to www.independent.co.uk]

Household debt a 'threat to UK economy'

High house prices and mortgage debt are destabilising the UK economy, a European Commission report warned today.

In a report on the performance of all EU member states under increased monitoring powers in the wake of the economic crisis, the Commission highlights "high levels of household debt" and the "insufficient and rigid" housing supply in the UK.

...It said household debt has been rising steadily for the past ten years, and highly indebted households are "vulnerable to rises in interest rates or in unemployment, with potentially destabilising effects on the economy at large".


Millions face financial woe as debt levels soar

A quarter of families are cutting back on food costs by not
ordering a regular take-away, or by buying basic ranges in the
supermarket, according to the Aviva report. However, they are still
buying takeaway coffee.


This I love - Santander - a Spanish bank at the heart of the Spanish consumer debt crisis reassuring investors that Brazil's soaring consumer debt and growing defaults are nothing to worry about, lol:

[link to www.nasdaq.com]

Brazil Consumer Debt Won't Impede Economic Recovery -Santander

June 22, 2012

RIO DE JANEIRO--Contrary to the opinions of many analysts, Brazil does not have a looming household debt crisis, and consumer spending should lead a second-half recovery in Latin America's largest economy, Banco Santander said Tuesday.

With consumer-loan defaults rising--in April reaching their highest level since November 2009--many analysts point to a consumer-debt overhang and a coming household-deleveraging process as obstacles to faster growth in Brazil.


And reality:

[link to brazilianbubble.com]

Brazilian consumer default on credit cards has reached 27% in April
POSTED ON JUNE 18, 2012 ·

After years of exuberant growth, the credit card issuers are suffering from high default rates. In the current faltering economy, Brazilians have never been so indebted and the default rate on credit cards has reached 27.3% in April, according to Brazil’s Central Bank.

If the default rate criteria becomes more rigid and takes into account delays on payments between 15 to 89 days, the delinquency rates jump to 38.8%. In other words, banks should have earned R$14.6 billion more than what they did.
>>>

So how safe an investment is debt based on consumer credit, even as consumer credit levels rise to levels last seen just before the bursting of the debt markets? (US consumer debt was in the 140s)

The fact that this debt is taking place outside the US does not make it any different or any safer. On the contrary, the perceived "safer" nature of those countries just has permitted investors to become more complacent

So many of the "safe havens" unthinking investors are flocking into will prove to be anything but

read the comments on the video.

Awww! Cant give you anymore karma this week Anne!!

And you really deserve it!!!

I wont forget though, you've been nothing but help here!!

hey i enjoyed it. on the second day i gave another five stars and pin suggest, i think it helped too.

hmmm...i saw ebt comments i think...my internet is super super bad so i can't go back into it right now but there are comments on the ebt cali video.

i asked at my corner store yesterday, they said no probs this week. and EVERYONE uses ebt in my hood.

sooooooo glad we are moving! it's rough as hell here.

Child support payments....Texas

Wells Fargo..

my CS payment is running 6 days late this month so i called and asked about it on friday,was told a glich in the system was hangin up some postings..WTF?

I use the debit card system through wells.

Bet those ass-holes are sitting on that money so they can make a buck...bastards!

Thank you Anne...you do a great job staying on top of this data

I'm glad to help howeer I can. I pretty much eat and breathe the markets , for better or for worse

Currently, I'm keeping an eye on that $2 trillion US dollar shortfall, which is what they admit to. Actual numbers are probably about 25-50% higher...but I'm a cynic. Just look at the way that JPM's "whale" exposure has exploded from $1BN to over $4BN as the truth slowly comes out, lol

The dollar shortage hits directly at smaller corporations in developed nations, and perhaps even emerging central banks.

This is on top of that $46 TRN corporate refinancing wall approaching...which S&P says will result in "challenging" credit markets

Economists use the words "challenging " and "difficult" the same way your dentist tells you it's not pain, it's "pressure", lol

Here is an interesting piece from today's FT, discussing the dollar shortage and the pressure on swap lines...

Note that he says that the US dollar shortage is WORSE than it was in 2008. That should raise a few red flags...just consider the myriad of implications in that one statement

He starts off by discussing that his father, a civil servant, advised bureaucrats to blame everything on "technical difficulties" (interesting, given the nature of this thread, and the "technical difficulties" occuring over in the Uk banking system)

Liquidity crisis brewing...

The article is worth reading, but, I've isolated just a few paragraphs...

A ‘squall in the fall’ over dollars for Europe
By John Dizard

June 24, 2012 5:11 am

...Also, it appears that the rest of the world is much shorter of dollars than it was even at the time of the 2008 crisis.

The world has run up even more dollar-denominated debt in recent years, as private America deleveraged. So foreign private accounts are enormously short of dollars; two weeks ago Morgan Stanley estimates the dollar gap at about $2tn.

Already, banks in peripheral Europe, which appears to start now at the Rhine, have had to cut down on voluntary dollar lending or new project finance that requires dollars. Spanish banks, for example, have tried to offset their dollar shortage by using their subsidiaries in the western hemisphere to channel funds home. That practice is up against the prudential, or regulatory, limits.

...Edwin Truman, a senior fellow at the Peterson Institute in Washington, a former Treasury official, and former director of the Division of International Finance of the Federal Reserve Board of Governors, says “I can’t imagine they [the Fed] will be lucky enough that the Europeans won’t want to continue [the swap lines], and that this will happen sometime before the end of the year. It will be a squall in the fall.”

Please read the rest at the FT site, always worth a morning read imo:
[link to www.ft.com]

So you are of the opinion that the dollar shortage may be the cause of the problems we are discussing in this thread?

If that would be the case then "they" are taking a major step towards veiled austerity...

It is definitely a possible cause

That's why I'm at work on a Sunday, trying to prepare a roadmap for the coming week

Again, as I mentioned on the other thread, there is this game of cat and mouse we're playing with the treasuries and central bankers

In 2008, the picture was much clearer, they allowed us to follow the respected indicators of risk: Libor/OIS, Euribor, VIX, even honest pricing of precious metals and US dollars

Now, they are trying to prevent hedge funds from exacerbating the problem , they're trying to prevent bear raids, esp on banks which can end up being incredibly costly to taxpayers.

They remember well how predator funds and fellow Ibanks turned cannibalistic shorted Bear, Lehman into insolvency and attempted to drop WFC BAC and C down to bankruptcy in a feeding frenzy of shorting

But in their understandable battle to prevent that feral pack activity, they've taken the batteries out of the smoke detectors and de-activated the fire alarms. The hurricane alerts have been disabled, the radars turned off unless you have government clearance...

Worse, they are adding deliberately misleading data to confuse the algos and bearish analysts like Nouriel Roubini (who have been deliberately discredited so that few follow their warnings or analysis)

So now how do we know there's trouble? Ordinary prudent investors just trying to remain solvent are increasingly caught in the cross fire between billionaires and central bankers

We're reduced to checking for broken twigs and signs of hoofprints in order to detect what is happening in an increasingly non-transparent system

Believe it or not, we were lucky when Lehman happened. At least the US has (or had) a fairly transparent market where it was difficult to hide problems as they unfolded. It will be far worse when a Lehman style event takes place in a command and control economy like China, Russia or even Europe

That's one of the reasons I check GLP...esp threads like this one

Annecdotal evidence , corroborated over a range of income levels and locations, can be one of the most powerful indicators

My husband has been using our bank card as credit with no problems...I went to Food Lion today and it was declined 2ce as debit (and we have $ in the account)but went through as credit. It's a small bank so we didn't think there'd be a problem like there would be if it were BofA. Not sure what happened there, the checkout lady said it hadn't happened to anyone else this morning.
I'm near Richmond, Va.

Once you are able to come to the realisation that we don't actually need money to survive, and that it is one of the many tools they are using to control and manipulate humanity, some of what is unfolding will become clearer to you.

I have come to realise that there are no coincidences with world events and events such as this. Since I realised that we are all being held spell bound, living in an illusion of a world painted by our masters, I don't leave anything to chance anymore.

To someone still asleep, they take the news as they are being fed that this is an actual computer glitch and that the government is doing everything to fix the problem as they love them. Perhaps these groups of people don't know about 9/11 and the eerie silence of these same protectors. Humanity is like cattle being bred for slaughter with some of us that are awake shouting that farmer is only breeding us for the kill while other keep on eating grass and telling us to shut up. No matter how much grass the farmer feeds you, he still ends up killing you.

I see this event in these ways....

1. Another dry run for what they are about to unleash on the planet or the real thing has started already and this will only grow bigger as the days go by spreading to other banks and with people not being able to access their accounts. Don't forget we had a dry run of this glitch last year.

2. There is an actually bank run taking place and the excuse of a computer glitch to cushion the effects of what is unfolding as they are not about to create all the havoc yet.

Bottom line, it is time to switch off from the system. They will come up with any excuse....all excuses to play the game to their own advantage. They will twist and bend people's thoughts and reactions until they find themselves cornered, as long as these people think they are acting in their interests. They are not your friends, the system is not there to protect you...It never has done this. When will people realise that they are slaves and expendable to this system and that they, like past generations have always been slaves and this planet is under lockdown mode.

I hope people wake up soon.

Nice glitch to stop bank runs. LOL On Power Lunch financial news today a guy talking really fast said....
“What to do with your money before the weekend?.........I say go to the bank and get some out.”

Odd to hear him say that on MSM, even if he was joking. he didn't laugh after saying it. It just kind of laid there in the air. LOL It was said in a way, you had to be paying attention and know what's going on in financial news or you would disregard it as him just jabber jawing.