Posts Tagged ‘interest’

You’ve no doubt heard that the Feds will rule this week on new sweeping changes to the credit card industry.  




Part of their proposal is that credit card companies will not be permitted to raise the interest rate on existing balances.  While many seem to be thrilled with this prospect and feel that justice will be served, some are oblivious to the backlash that will inevitably occur, namely the elimination of several credit card companies due to their inability of maintaining profitability without the use of such monstrous tactics, and the elimination of credit cards being issued to anyone with less-than-perfect credit profiles.


Over 65,000 consumers have sent in feedback to the Feds on this topic along with stories of the aggressive tactics that credit card companies have taken to maintain profits, and to collect on delinquent debt.  Many submitted lengthy stories as well, stories which showed that even a perfect payment history did not protect someone from “unfair” treatment at the hands of the credit card companies.  There are an abundance of consumers in all aspects of society who feel they have been mistreated by the credit card companies.  So it’s no wonder that this is the most involved consumers have been on any issue with the Feds.


While I agree with the premise of most of the proposals on this matter, there are obviously going to be some privileges that will be revoked with such regulations.  One of which being the elimination of small credit card balance issuers who typically issue credit to high credit risk consumers.   Many economists are attempting to sway the Feds due to this “downside” but personally, I think it’s GREAT. 


This is the first time in a long time that I would find myself able to say this, but I think that both the proactive steps as well as the reactive scenarios are excellent for our economy.  While the pill will be hard to swallow on both sides, we have become a society dangerously dependent on credit cards.  At what point did we as consumers think that we needed so much more than we could actually pay for?  In my opinion, those who are in tough financial times, thus possessing low credit scores, do not truly need the temptation of a credit card—at any rate or any available balance.  Whether one is wealthy, middle-class, or poor, one does not truly need a credit card. As a society we have given away too much of our freedom and helped build these credit card companies to the flesh-eating monsters that they are. WE have created this monster.  We only have ourselves to blame.  I firmly believe that a dose of “tough love”  will aid in eliminating some credit card companies and their high credit risk junkies, and that is a very good start.

Copyright 2009 Kellene Bishop. All rights reserved.
You are welcome to repost this information so long as it is credited to Kellene Bishop.  

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//www.mysteriesofcanada.com/Canada/tim_buck.htmOpinions abound concerning the conspiracies that may have been present during the run-up to the Great Depression. Regardless of your beliefs concerning these conspiracy theories, you must acknowledge that several privately-held companies benefited greatly from the results of the Great Depression upon the people of the United States, in general.


How often does history repeat itself?


Current headlines read:

“Fed’s Regulatory Powers May Expand After Crisis”

“Fed Expands Lender of Last Resort Role Even As It Draws Line on Bailouts”

“WaMu’s Decline Values Lender Close to JPMorgan’s Takeover Offer in March”


If you are aware you will see these headlines as ominous indications of the future.


How much more power can be consolidated in the overgrown giant we know as the “Fed” before it owns us lock, stock, and barrel? Or, is it already too late to even consider that?


As the Fed grabs for more control at each and every turn (notice that, in the long-run, the results do not generally help the public but specific, private shareholders of entities shrouded in mystery), and as super-giants such as JPMorgan and others grow in leaps and bounds by buying smaller entities for a steal at the expense of the public, the question must be asked: Was our current situation engineered from the beginning?


How much imagination must one have to believe that the Fed and its “coordinators” intentionally made credit far too easy to obtain in our society in an effort to run-up prices (which empties the pockets of the public) and then intentionally began a series of credit-tightening (which inevitably results in defaults) in a concerted effort to relieve the American public of its hard-earned wealth (while leaving the public holding with a rather enslaving bag of debt)?


History may well tell the true story (albeit re-written to please its authors), but today one can only guess at the intentions of those in true power. Today’s best advice could be stated “Beware the wolf in sheep’s clothing”, in an effort to put all individuals on notice that the actions of the Fed and its consorts may not be in your best interests.


But how can you possibly avoid this uninvited impact in your life?  GET OUT OF DEBT, even if it represents a small interest rate on your home, eliminate it. As long as you are paying on debts you are playing in their game. You can’t get out of the game until you get out of the debt.  Debt requires you to pay interest on air. This is in addition to the heavy interest you pay on the “air” of our governments spending in the form of taxes and the so-called social security income (which is also a tax, folks, not an entitlement).  You might as well be paying a fee for every time you exhale rather than be in debt.  At least that provides you with a necessary freedom. 


This may sound trite, but my emphasis here is to get you to realize just how enslaving this national debt and reliance on the Fed is.  And I do mean SLAVERY.  You are required to work through May just to pay your portion of taxes to the government. While it may not be the same as the 20 year requirement for indentured servants in the South, it’s still is a heavy toll. I hope that my sharing with you these alternative views may help you realize that you may be participating in game that you never wanted to play.


Copyright 2009 Kellene Bishop. All rights reserved.
You are welcome to repost this information so long as it is credited to Kellene Bishop.  

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