Monday, January 18, 2010

The Credit Card Game

Monday morning, and I am trying to get back into my routine. Hopefully, I will get a few things done this week, and perhaps my bag will magically show up on my door step. I am a little out of it having been away for a week, so perhaps later this week I will have more to say.

President Obama seems to be getting it with the banks. Perhaps he is reading my blog among the other things he reads. These guys on Wall Street are truly a different bred. They are greedy beyond belief, and I think the President is picking up those vibrations correctly.

The banks and credit card issuers are looking for ways to get around the new restrictions placed upon them with new fees. I have nothing against them trying to fee us to death as long as there is true competition, the consumer can shop for a better credit card deal. That is what free enterprise is suppose to be about, isn't it? Fee business is more dependable than playing the spread. We all remember what the spread is? The spread is the difference between the cost to borrow money and the price charged to lend to the consumer. With adding fees they make up for what they have lost through "restrictive legislation" on interest rates charged and raising the interest rate charged.

These guys are no dopes. They worship money and they will fight like hell to hold onto the game that is rigged in their favor.

Stay tuned.


Julie Schuler said...

"Crazy like a rocket. Nothing in my pocket. I keep it at the rainbow's end." -Dr. Teeth of the Electric Mayhem.
Haven't the bankers ever seen The Muppet Movie? They suck.

LceeL said...

I hope he sees it - and recognizes what he sees - the greed. Would that he had the wisdom of Solomon and the ability to change their greed to the good.

Butch said...

I agree with the shopping for the best rate on a card, however, you are penalized, maybe twice, if you make this decision yo change carriers.

First, if you drop your card for a better rate it will in all probabliity effect your credit score and second, if you don't drop it and yet don't use it there may be a fee for lack of use. With the wink of an eye and a quick little grin you hear "gotchya".

I just read the numbers on defaults on credit cards since 2007and the percentage of increases. Should I feel for these issurers of cards? I don't think so. I don't thank they have acted in THEIR own best interest. Again, the numbers of possibilities as to why it is THEIR own faults.

1 Cards are issued via unsolicited mail.
2 Cards are handed out on college campuses every fall to a bunch of kids that have no credit history and in many cases no understanding of the credit world.
3 The limits of credit that are allowed by those issuing the cards is unbelievable.

As you say, Obama may get the idea as to the greed that these CEO's, COO's, CFO's and the like have in their wallets but he walks a very fine line when dealing with them. After all, he employs one of their own, Timothy Geithner.

I hate to say this but I do not feel that there is one member of the congressional committees that deals with the finances of the US that has not let us down since 2007, or maybe before.

I have not seen transparency in this administration and I feel I will never see it in congress. It's all about me, me, me.

moneythoughts said...

Three great comments!!! Perhaps we should visit the credit card story again.

Bottom line: You must pay off your balance every month. Period. This is where people get into trouble when they make minimum payments and find themselves deeper in debt.

People need to save for that rainy day. For some this maybe impossible, I can understand that. But, everyone needs to put cash into a savings account. I know they pay next to nothing in interest now, but carrying debt above a mortgage payment and/or a car payment is not smart.

The attitude that many have that they want it now, and they can't wait until they have the cash to buy it must change.

Congress can not be looked to to do the right thing for the consumer of credit every time. Personal responsibility is an essential ingredient to sound personal financial management.

winslow said...

Two things Obama said he would do and did not follow through: 1)he would do a line-veto of each item in the budget. Just the opposite has occured...there is pork galore, 2)Obama said he would appoint responsible people in his administration........and the first person he picks for Secretary of the Treasury lied and cheated on his taxes.
Many, many misteps.
And as bad as it is, it's still better than under Bush who had no idea what was going on.

Butch said...

Funny group of singers. Maybe they can get on American Idol.