Thanks for Commenting
Deregulation in banking helped us down this road in the housing bust. Prices have fallen nationally double digits. So you see mario even those who did things right are punished.
Regulation serves a purpose. Your stand on the credit card issue is why the conservative movement is in the tank.
Those under 35 who are registered Democratic now double those that are registered Republican. Those numbers were almost even less than 10 years ago.
If you don't like the terms being offered, don't get a credit card. If you're not happy with the fees and penalties of one credit card company, then switch to the another.
That's a joke, right?
Even in theory, a market only works properly when there are a large numbers of buyers and sellers, neither under any compulsion to take a deal, and both with full information.
The credit card market doesn't meet any of those tests, and can't even in theory produce an optimal result.
There ae only a few credit card companies, one can't live normally in the US without a credit card, so buyers have no realistic choices and are under a compulsion. The game is rigged in favor of the companies.
oops, lost the terminal r in my last name. Don't want to appear to be posting under a psuedonym. It was only a typo, I swear. No intent to mislead.
"...one can't live normally in the US without a credit card..."
Really?
I seem to be able to get by just fine with a debit card. Yes, I have credit cards, but I rarely find the need to use them. I even use a debit card for my business.
I must admit I hadn't thought about debit cards, because they've always seemed like such a lousy deal that I put them out of my mind. Also, they're still kinda new-fangled to me.
The drawbacks, afaik, are
- much less protection against identity theft
-much less protection against fraud
- much more expensive. For example, I get 5% back on Amex purchases of gasoline, which I don't believe I could get with a debit card.
- more flexible. I keep most of my cash in accounts that bear higher interest, which limit the number of withdrawals each month. I can then pay the credit card bill with one withdrawal check, which I don't think I could do with a debit card, but I may be wrong. I hadn't looked very deeply into it.
Is it really possible to buy an airline ticket with a debit card without getting flagged as a possible terrorist, and to rent a car, and reserve a hotel room? Can one build a credit history and thus a FICO score to get a mortgage, using a debit card?
"Is it really possible to buy an airline ticket with a debit card without getting flagged as a possible terrorist, and to rent a car, and reserve a hotel room? Can one build a credit history and thus a FICO score to get a mortgage, using a debit card?" The short answer is no.
People have been shown by their conservative government that borrowing huge sums of money to pay for thnigs we dont need(ie Iraq War, unfufilled military contracts) is the American way.
Some things need to be regulated heavily to protect americans and the credit industry(banks, credit cards) is one of them.
I think I missed Mario's point.
I said that this market can't produce an optimum, even in theory, because
1. There are only a few sellers; and
2. Sellers have much more information than buyes; and
3. Buyers are compelled to accept a lousy, oppressive unfair deal.
Mario was, saying, if I undersstood him, that this market will produce an optimum, and we don't need regulation, because
1. There are only a few sellers; and
2. Sellers have much more information than buyes; and
3. Buyers are compelled to choose between a lousy, oppressive unfair deal called a 'credit card' and a lousy, unfair, oppressive deal called a 'debit card'.
This was another joke, right?
Also note that credit cards are pretty much the only instrument where the lender can arbitrarily change the terms of the deal (like the interest rate) on money you've already borrowed.
You might want to watch this:
http://www.pbs.org/wgbh/pages/fr...e/shows/credit/
Michael, from the site you suggested:
"It's important to read the fine print on your credit card agreement.
"Not many people do, however. Even credit card executives and consumer advocates admitted to FRONTLINE that the last time they read their own contracts was years ago and the credit card agreement is difficult to understand. Tucked into the fine print that people so often ignore is a clause that allows the company to change your interest rate (APR) at any time, for any reason, as long as they give you 15 days' notice. (So, Read the Fine Print.)"
And...
"Many Americans are inattentive about their credit card accounts.
"Approximately 35 million Americans pay only the required minimum -- as low as 2 percent -- of their balance each month. Sticking to that rate, it could take years to clear their debt and they'll end up paying far more than the cost of the items or services they bought."
The problem is not the credit card companies. The problem is that the vast majority of people live beyond their means. If you pay off your credit card every month (i.e. live within your means), then the interest rate and late fees are not going to be an issue.
My point is I prefer personal responsibility over government regulation. That's it.
Mario, *in principle* I agree with your point.
However, inpractice, the CC companies are the creation and beneficiaries of government regulation, and have historically exerted *huge* pressure to successfully shape those regulations to their benefit.
So, it's not really a question of more or less regulation, it's a question of which regulations do we have, and to whose benefit.
jd ur right they should try to regulate banks
Commenting by HaloScan
