Banks know a fatter hog when they see it. And that hog is the consumer credit business (nobody has figured out yet that consumers need paychecks before they can consume anything, on credit or otherwise ). To that end the Federal Reserve has logically set a low interest rate policy. And in true accordance with banking logic, the banks took the Fed's money, then raised the annual percentage rate (APR) on credit card purchases and cash advances and on balances that have a penalty rate because of late payment. Next they raised the late fee. What the hell? If Americans are on the ropes, struggling to make their payments on time, then the logical thing to do is to stick it to them. Bleed 'em for all they're worth. It's an American free market tradition. We the people do not complain. We expect no mercy. America is a business and the American concept of business is pure ruthlessness.
--Joe Bageant
2 comments:
Joe always know what to say and how to say it...
I remember the squeeze in the early 1980's. It was bad then. But what the banks are doing NOW beats all the crummy stuff we are putting up with at the moment. I just LOVE the new rule Congress approved. If you pay off your credit card balance before they want you too, you'll get a penalty! Once I get everyone paid off, I'm never using them again. And that goes for the banks too!
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