What is Coast to Coast? It’s a late night AM radio show about various topics, but it’s most geared towards topics relating to paranormal, conspiracies, etc. Yes, the subject matter is sometimes a little bit “out there” but their shows are often entertaining even if I don’t agree or believe with what they’re saying. It’s actually the number one syndicated late-night radio show in the country, so check it out. Here in the LA/OC area, it’s on from 10:00 PM to 2:00 AM on KFI 640 AM.
Like I do most nights I’m working late on the computer, on November 5, 2009 I tuned in to the show; it was all about the banking industry – mainly credit cards. The host (Georgy Noory) interviewed/discussed the subject with a guest (whom I don’t recall his name) for the first 2 to 3 hours of the show. I would say about 85% of what the guest was saying was gibberish (conspiracies about the financial industry) but there was one piece of information he talked about which was very interesting; credit cards for China.
In a nutshell, he discussed how the American economy (and our credit markets) are already highly developed, and the real money to be made is lending to consumers in developing countries… people that are buying their first cars, remodeling their first homes, and getting their first taste of the material life.
His theory is that the over the next couple decades, that is where the credit markets will really flourish. Of course this is nothing new (it’s common sense and we discuss China on this blog frequently) but his prediction did include a new piece of information I never thought of. Basically, it was that there is only so much money to go around (and lend) in the world. He believes banks will scale back their lending in America so they can lend it overseas at higher interest rates instead.
Furthermore (and here’s the conspiracy part) he says that’s the real reason we are getting our credit limits cut as of lately. Now this part, I don’t believe. Earlier this year, many banks were actually losing money on their credit card divisions due to all the defaults – that’s why I believe we are going through these brutal credit limit cuts lately (they’re trying to minimize their risk to prevent losses). But either way, it was an interesting theory I had not heard before.