Senator Bernie Sanders, the irascible Vermont Independent, has called on Trump to support legislation that would limit the grift that credit card companies charge. Given that Shadow President Elon Musk wants to ditch the Consumer Protection Bureau, my guess is that nothing will be done.
Tuesday, December 31, 2024
Will Trump Support 10% Cap on Credit Card Interest Rates?
According to the New York Federal Reserve, American credit card debt was $1.17 trillion at the end of September, the highest level of debt since the Fed began to track it in 2003. Moreover, credit card defaults are at their highest level since 2010. Candidate Donald Trump proposed a 10% cap on credit card interest rates. But will President Donald Trump follow through?
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32 comments:
Isn't there a law against usury fees or interest?
I get the premise, and its sounds good to cap credit card rates. But I'll take the other side of the argument. If they do this, it will most likely cause the availability of credit to be diminished; and it will hurt the bottom third of the population and put them in a worse position than they are in now. The bottom half is screwed. No Savings, No Net Worth, No Way to get ahead. Since Nixon took us off the gold standard (A temporary executive order Ha!)
The Median salary has increased 5.5X from $10k to $55k. However a car has gone 12X, Housing 14X, Healthcare 37X. A dollar from 1971 will only buy you $0.12 today. We need to fix the monetary system now, not dick around the edges with Caps on CC rates. I fear that the pitchforks are coming. For those in the top 50% my advice is reduce debt now, have six months to a year in emergency savings and live below your means the best you can. Those that are doing ok now could easily slip into not doing ok later. Sorry for the long rant.
BO the whiner gets his daily dig in at the winner DJT.
Not my fault these losers cannot manage their money properly and now they want the government to fix their stupidity.
Says a millionaire career government profiteer who owns three homes? I hope not. The market reacted to Biden's economy the same way it reacted to Carter's disastrous economy. It will react to Trump's economy the way it did eight years ago, and rates will come down. Patience, socialists. Patience.
Trump isn't going to do anything he promised on the campaign trail. Just like he didn't in his first term. But it sure is exciting to watch the Republican fight between the MAGAs and the DOGEs!
He said a lot of shit during his campaign to get elected and to simply stay out of jail. Sex offender won and gets to stay out of jail for maybe the next 4 years!
While a cap on credit card rates would be nice. it is again a big government solution that fails to address the high amount of defaults in the credit card business. It is a form of socialist sharing were the responsible will pay for the sins of the irresponsible. The best solution is self discipline, do not use a credit card to borrow money, it is a recipe for disaster.
Many still don't understand that the credit card companies get 3% of all transactions that is paid by the merchant, but is added to the cost. It is a fantastic scheme that even government envies. Many are enticed with points and rewards, good old cash is till a better idea for all.
Maybe a better solution would be no cards for the underage, and no cards for the irresponsible. I suspect the card industry is just willing to keep charging interest and enticing more use because the 3 % is guaranteed. Maybe stop the rewards and points, some merchants give a discount for cash, a great idea.
The dangerous addiction to credit should be taught in school, a matter of just real life problem avoidance, but I suspect the credit card industry would rather offer grants etc. to keep the kids dumb and in debt.
Debt addiction is just as destructive as drug addiction, but there is a lot of money to be spread around for all its supporters.
I suspect that your article is more about creating a wedge political issue than really addressing a serious social problem.
So Trump is now supposed to fix what happened under the Biden's watch... lol
Biden has been a credit card company whore since way back.
https://www.npr.org/transcripts/93954519
And Hunter was pardoned after daddy dementia lied. MAGA vs DOGE is a robust party debate, unlike holding primaries and rejecting the winner in order to select a candidate who didn't receive a single primary vote. That's why she lost and you are left whining. Happy New Year!
Mortgage rates reached 14% under Saint Jimmy Carter. We waited for gas on odd and even days. Then, he was thrown out of office and things improved dramatically. Trump isn't your president for 21 days. He'll fix what Biden destroyed, just as Reagan fixed what Saint Jimmy wrecked.
You must be one of those left-wing lunatics who lie all the time
Spoken like a real Biden person
Bernie, seek help!
Great by post! Basic financial literacy should be mandatory in every high school in America.
Trump also promised to abolish income taxes on all people whose last names start with “M.”
Bernie voted for Biden BY FAR the worst, most corrupt and incompetent president in our history
Can't agree. All of us are just prey for the financial institutions when it comes to credit. Fees, rate hikes, penalties, minimum balances and the like are all but hidden from the consumer. Doubt me? Quick...what are your accounts subject to? Oh, wait, find your last statement and look for the smallest print you can find and translate the legalese. Oh, they didn't list it? Maybe they referred you to a website...then try to find that section. They use every trick they can get away with to get our money. Meanwhile the predatory ads keep at us, so yeah our government is supposed to protect us and i wish they would try harder. All the while big business keep at us using scientically designed ads to tempt us and change our way of thinking. Fewer and fewer retailers take cash. Rate free debit cards are not available to account holders with low balances. So yeah, there outta be a law. Maybe a lot of laws.
If you want to be taken seriously as a “journalist” blogger, maybe quit with the bias. Elon Musk is not a ‘shadow President’. He is working to help eliminate government waste. If you don’t think our government spending and wasteful spending at that, is not a serious problem, then convince your readers of that, instead of making snide comments that undermine the effort to save our wallets. #DOGE
Banks aren't stupid. Cap the interest at 10% and you'll see fees upon fees to make up for their loses. Businessmen always find ways around these things. Maybe a application fee for one.
I find it interesting that at this time you feel it necessary to mention President Jimmy Carter. Not sure where you learned economics my guess from FOX News . Both President Carter and President Biden had strong economic indicators not to mention their honest upstanding character like President Ford is what a President should be. Trump is the opposite and embarrassment to the office.
“I suspect that your article is more about creating a wedge political issue than really addressing a serious social problem.
Isn’t that the whole point of this blog?
Only if he can benefit from. That's answer to everything he does
Bernie you do not deserve to use Trump's name in your left-wing blog your blog is a piece of shit and a lot of democrats who blog on your blog have no clue and did not learn anything from the election which is good because we will win more seats in the midterm.
'Shadow President' haha. You dems are losers and have zero creativity. Same playbook every cycle. Bannon was the original puppet master. Now there's a new one to hate. Yet you same loser dems were praising Musk up and down while he was innovating and bringing to mass market EVs at $35k.
Your last sentence says it all, 'my guess is that nothing will be done'
That pretty much sums up Trump. He's all talk and very little action. Full of promises yet delivers little.
Now wait a minute— you mean the party, and the dude, who campaigned against business regulations is eager to enact regulations on the banking industry??
Has Ghost President Musk weighed in on this? Evidently he’s moved into the Florida White House already- https://www.nytimes.com/2024/12/30/us/politics/elon-musk-trump-mar-a-lago.html?smid=nytcore-ios-share&referringSource=articleShare
Did Biden support this cap, if so why wasn't it enacted?
That rate is too low to be workable. Like a true socialist economy, the unintended consequences will do more harm than good. The class divide will continue to expand as credit markets tighten for all but those who need little to no credit. The impact on retail will be profound. The short term surge in bankruptcies due to accounts being called will be painful for the entire economy and then the folks who get the short term relief will not be able to get new credit. It will impact disadvantaged populations and thus create further arguments over racial divides.
Keep in mind the old Reagan trope about the scariest phrase in the english language.
Remember that credit card debt is unsecured with no collateral required. While not an apologist for the industry (I do have a relative who worked at a major Delaware-based company) they do see tremendous losses from deadbeats, late payers, etc. In the end, those of us who pay our credit card bills pay for those loses though very high rates. Limiting capping interest rates will surely lead to lower credit card limits for users.....which might actually be a good thing.
Can't we all get along for a day or two. For God's sake its' only Jan 2nd. May your New Year be a healthy one Bernie.
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