Unaffected Middle Class

[nicoenarg]

Surely the best insurance against a looming bust is the hide your dollars under the matress, not spend them at Disneyworld !

If everyone hid their money under the mattress, uh, wouldn't that bring the bust along even faster? Theorectically?

 

[starlucia]

Very interesting --- care to share which bank?

A local friend of mine -- who has absolutely zero documented income and hadn't even been thinking about getting a credit card -- recently received an unsolicited application in the mail from Banco Galicia. She thought, "Hmm, why not?", filled out the app, and had her new card within a week.

 

[solerboy]

If everyone hid their money under the mattress, uh, wouldn't that bring the bust along even faster? Theorectically?

If the people are spending their money on holidays abroad, I dont think it would have the same effect on the Argentine economoy either way.

 

[nicoenarg]

If the people are spending their money on holidays abroad, I dont think it would have the same effect on the Argentine economoy either way.

True, but I was referring to the whole "under the mattress" part. If you're not going on vacation (it will affect the local economy if you go on vacation...airline tickets, airport taxes, duty free, local travel agents, etc. etc.) but putting your money under the mattress...you're inadvertently hurting the local economy, are you not?

 

[YanquiGallego]

It's because they spread it out and pay for it in ridiculous amounts of cuotas. A Porteño friend of mine is paying for a round trip coach ticket to California over the course of 2 years--just for the ticket!

On another note, I don't know how it's possible for banks here to issue all these cards without verifying income, wouldnt this have them in sure-fire line for easy defaults a la USA?
Another thing is if you are opening an account and putting in an important sum of money into the bank, then perhaps they are able to see that you are somewhat solvent. But I dont see how just walking into Santandar and sticking a couple thousand pesos into a cuenta would automatically qualify you for 3 cards. Not that I don't believe it happened, but its unbelieveable based on the economic policies today globally. But then again it is Argentina.

 

[nicoenarg]

Another thing is if you are opening an account and putting in an important sum of money into the bank, then perhaps they are able to see that you are somewhat solvent. But I dont see how just walking into Santandar and sticking a couple thousand pesos into a cuenta would automatically qualify you for 3 cards. Not that I don't believe it happened, but its unbelieveable based on the economic policies today globally. But then again it is Argentina.

My wife was offered credit cards before she even put a single peso in the newly opened (not active yet) account. And this is HSBC we're talking about.

 

[expatinowncountry]

There is something going on... when I arrived in October I asked my bank (Santander Rio) if I could add my wife to the account and apply to credit cards, they told me that it was not possible because mine was a Cuenta Sueldo. I had to go today to the bank because they screwed with something and they offered me Visa and Amex -without asking for them- and to add my wife to the account and the credit cards.
Probably the economy is slowing down too fast and they want to keep consumption up... who cares if people cannot pay after.

 

[nicoenarg]

... who cares if people cannot pay after.

Scares the crap out of me!

 

[garygrunson]

Another thing is if you are opening an account and putting in an important sum of money into the bank, then perhaps they are able to see that you are somewhat solvent. But I dont see how just walking into Santandar and sticking a couple thousand pesos into a cuenta would automatically qualify you for 3 cards. Not that I don't believe it happened, but its unbelieveable based on the economic policies today globally. But then again it is Argentina.

Since I was changing banks, I only deposited 100 pesos to start the account. I figured it would take some time to get my debit card and things in order. I was called to pick my AMEX up at the bank one week later. My debit card arrived later in the mail (not sure why) So I had my credit card with a 100 pesos in the bank and nobody even checked if I had a job or income.

A year later they increased my limit 400%, and offered me a new VISA and, what I think is a HUGE line of credit for a personal loan, all without any real information. I don't want all this but I do find it strange how easy it is to get.

 

[expatinowncountry]

Scares the crap out of me!

When I was student in the States, I remember there was a program on the TV in the afternoon that teaches you how to buy a house or refinance your mortgages using your credit cards. It really smell fishy back then but what the hell... I was student with a fellowship of $1,500 and a credit card with $25,000 credit line. Ten years later, the bubble burst.