Wall-Street Gall: Handy Summary

Making such pronouncements particularly galling is the fact that many of the banks summarily raising interest rates [on credit-card debt] and piling on the penalties have received billions in bailout money. Our money. We gave Citi $45 billion, Bank of America $45 billion, JPMorgan $25 billion, AmEx $3.4 billion, Capital One $3.6 billion, and Discover $1.2 billion. In fact, American Express, Capital One, and Discover all converted to bank holding companies to make themselves eligible for bailout funds.

[Arianna Huffington, "The Credit Card Debt Crisis: The Next Economic Domino", Huffington Post, 26 February 2009]

Posted on February 25, 2009 at 16.50 by jns · Permalink
In: All, Briefly Noted, Common-Place Book

3 Responses

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  1. Written by S.W. Anderson
    on Thursday, 26 February 2009 at 02.35
    Permalink

    Fresh evidence, as if any is needed, that one long overdue reform
    is restoration of usury laws and federally set interest ceilings.
    Those were dispensed with during a period of high inflation toward
    the end of the Carter administration. The argument was that if
    interest rates weren't allowed to float up and find their level in the
    marketplace, credit would dry up. Under the circumstances, that
    made some sense. What didn't make sense was just leaving things
    that way ever since.

    Well, it didn't make sense for consumers and small business. It made
    plenty of sense for credit card outfits and their well-paid lobbyists.

  2. Written by jns
    on Thursday, 26 February 2009 at 10.47
    Permalink

    Conservatives are very good at crafting arguments that sound good but they rarely hold up to scrutiny or long-term utility. A favorite: it's such a thankless, low-paying, 24/7 job that gets all the blame and all the responsibility–and yet plenty of people every few years seem willing to spend millions of dollars for a chance to be president.

  3. Written by rightsaidfred
    on Saturday, 28 February 2009 at 13.24
    Permalink

    Conservatives are very good at crafting arguments that sound good

    You mean it may be possible for me to reach that lofty plateau someday?

    BTW real conservatives don't use credit cards. We make our own stuff, thank you very much. If needed, we barter. Occasionally, someone gets really liberal and uses cash.

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