FlyerTalk Forums - View Single Post - Frequent Flyer Programs Are Like Ponzi Schemes
Old Apr 22, 2009 | 8:01 am
  #18  
mikeef
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Originally Posted by biggestbopper
1. I would certainly be crushed if I lost my FF miles. However, I plan to continue my "burn, baby, burn" approach to miles 'cause who knows how long they may be around or what they may be worth in the future.

2. I have done lots to get my miles--namely flying and filling out dull credit card apps.

Come to think of it, Kimberly may have a point--we have not invested a lot of money in getting miles. Although the rebate lost by using a FF card instead of a cash back card has a quantifiable value. Call it 1.5% of money charged on credit cards. Still, not that much.

In any event, I suspect FF programs are about to get way devalued as they relate to credit card bonuses since it looks as though the remarkably excess monoply profits US card companies have been using to cross-subsidize benefits to FTers are about to be hit hard by new consumer protective laws and regulations.

Burn, baby, burn!
Bingo. Miles don't earn interest. I generally keep enough miles in my account in case I need to make an "emergency" trip in F to Bali and no more. Miles will always be deflationary until the airlines are forced to reserve for future liabilities fully, and we all know what the chances of that are.

Mike
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