Today, US Senators overwhelmingly rejected placing a 15% Cap on Credit Card rates. 2/3's of the Senators opposed the proposal. Most credit card accounts pay interest rates above 20%, with some reaching as high as 40%.. The Senators feared reprisals from the Financial industries, who themselves are borrowing from the public at 1/3rd the rate they charge credit card holders.
Perhaps they wondered under what auspices they would seek to dictate to the companies with whom Americans voluntarily contract for these credit cards.Quote by: tengers
The credit card companies are part of the groups that we are bailing out to tune of several trillion dollars. If the public could loan treasury money at the same rate they are being charged by Credit Card Companies, I would have no objection.
If credit card companies are making a profit anyway they can while facilitating the rest of the country there is no problem. For them to charge up to twenty percent for paybacks, or fourty prercent, that puts strain on the consumer, but that isn't such a bad thing really is it? Then the people that can afford to lend money can afford to pay it back because they are in a higher salary bracket, so they can make ends meet still with all the credit they are paying for.
If they were to lend treasury money that would be the same as the government lending them the money basically, so it makes for a bigger hole to get into. If they can see themselves getting out of the hole then it is good. If they see the hole getting bigger too, which it could, there would be more of a mess than if they didn't follow up on that.
If they were to buy up all the bad debt then they would make the hole smaller, as they could then demand the money before they pay the salaires of the people. To keep the money is theft from the state, not the banks doing it but the law makers. If the law makers would write it into law that they can go and skim the top of the salary for the outstanding debt, there is nothing stopping them. The people lend the money from the state treasury, they have it automatically deducted from thier salaries in the form of outstanding taxation automatically before they get paid. They can make ends meet, that is a certainty.
So the answer to bail out the credit comapnies and everyone else is to buy up the outstanding debt and do that to the consumers.
!! Going to my destruction !!
tengers, once again. Let's have some sources, please.
I spent a lot of money on booze, birds and fast cars. The rest I just squandered.
-George Best, on being asked what he did with his footballing fortunes.
People will never learn it seems and the same mistakes will be made over again.
I reject your reality and insert my own!
In this case, the Times did not explore the motivations of the opposition effectively enough to convince me there is something sinister going on.
The credit card companies are unbelievably awful and their presentation of contracts designed to bewilder any except the most legally informed citizens.Perhaps they wondered under what auspices they would seek to dictate to the companies with whom Americans voluntarily contract for these credit cards.
Act that your principle of action might safely be made a law for the whole world.
- Immanuel Kant
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