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The company said net charge-offs or problem credits would total $20 million, resulting in a loss for the third quarter and for the full year 2000.
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But they do not get at the central problem: credit.
Unemployment remains a problem, credit is hard to access, and parents hurt by the recession or victim to foreclosure are less able to help out, Ms. Ross said.
Here's the problem: Credit rating companies have long contended that their conclusions are protected by the First Amendment, much as if their ratings were as irrelevant to the markets as, say, your average financial column.
Problem: Credit cards are still rarely available to Kenyans and bank loans are only authorised for large amounts of cash or as investments for buying homes or starting businesses.
We have problem shoppers, problem eaters and problem credit card users.
Giving cash to the poor, while helpful, solves one of these problems: credit constraints.
Lingering Credit Problem For starters, credit is still too easily available to those who can't afford it, according to Andrew Schiff, an investment consultant at Darien, Conn.-based Conn.-based Euro Pacific Capital
But Amex says it will keep a more diversified funding model.The second problem was credit.
The bailout has dealt with only half of the problem: the credit freeze.
The problem with credit has been the always dubious promise of magically high returns without unacceptable risks.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com