Reps. Luna and AOC team up on bipartisan effort to cap interest rates on credit cards at 10%

[Mashmont]

Works as designed. Don't like it? Come up with a better plan. No one has so far because of "maths".

For the third time, it was poorly designed, and that's why it is failing. The better plan is called "Let people decide how and if to invest their money".

 

[Toddsterpatriot]

Exactly. No real money. It's an IOU at best.

Exactly! Treasury notes are IOUs.

 

[Toddsterpatriot]

IOUs aren't the same as a pile of money.

You're right, a pile of money doesn't earn interest.

 

[Admiral Rockwell Tory]

For the third time, it was poorly designed, and that's why it is failing. The better plan is called "Let people decide how and if to invest their money".

How will you pay off the investments that people like me have already made? if you don't take care of the older population, what are you going to do? We actually tried to come up with a plan like 20 years ago. No one could then and no one can now. Good luck dealing with your disappointment.

 

[rightwinger]

It's a Ponzi Scheme. You talk about choice, but people don't have a choice not to participate in this scam that pays them a pittance instead of what they could make. SS is a scam.

The fact that everyone must join keeps it from being a Ponzi scheme

 

[Mashmont]

The fact that everyone must join keeps it from being a Ponzi scheme

That makes no sense. It's still a Ponzi scheme.

 

[Polishprince]

The fact that everyone must join keeps it from being a Ponzi scheme

Actually, that's what makes it a ponzi scheme. Social Security uses new money coming in to pay off others cashing out.

Sooner or later, the number of new investors in the scheme will dry up and they won't be able to make the payments any more.

 

[jbrownson0831]

Yeah, it will be great when that person making $40k a year gets smacked with a $2,000 bill to fix their car and only transportation to work and can't do it because they no longer have access to credit.

"I'm from the government and I'm here to help."

Well all they have to do is listen to all the Hollywood actors on tv telling them buy the car repair "insurance"....no problem.

 

[Mashmont]

How will you pay off the investments that people like me have already made? if you don't take care of the older population, what are you going to do? We actually tried to come up with a plan like 20 years ago. No one could then and no one can now. Good luck dealing with your disappointment.

Answered in post #59. Start weaning people off right now with progressively lower percentages of SS income. You'd be forced to do this in ten years. Just start it now. Simultaneously, you confiscate a smaller and smaller percentage of new earners' money until you're taking zero. Start the process right now. This year. Admit FDR's Marxist system was designed to fail from the start and scrap it. This is the only way.

 

[Zincwarrior]

Usury laws are a real thing. Credit card companies get around this for...reasons.

Having said that it would reduce credit availability to the more credit worthy persons.

 

[martybegan]

Usury laws are a real thing. Credit card companies get around this for...reasons.

Having said that it would reduce credit availability to the more credit worthy persons.

Because the credit they issue is unsecured by any assets, hence the higher risk and the higher rates.

They are also on the hook for any fraud as long as the person owning the card reports it properly.

Default and fraud are all costs baked into the rates.

 

[Zincwarrior]

Because the credit they issue is unsecured by any assets, hence the higher risk and the higher rates.

They are also on the hook for any fraud as long as the person owning the card reports it properly.

Default and fraud are all costs baked into the rates.

Not disagreeing with any of that.

Edit: Anyone remember American Express? It started the credit card biz, and started out with highly qualified borrowers and low interest rates.

 

[rightwinger]

That makes no sense. It's still a Ponzi scheme.

A Ponzi scheme eventually burns itself out
Social Security has been going for 90 years

 

[Mashmont]

A Ponzi scheme eventually burns itself out
Social Security has been going for 90 years

Only because it's been subsidized. SS is not self-sufficient. Like all Ponzi schemes, SS is unsustainable.
I'm thinking Trump will be the first leader to ever address this. No other politician has the stones. And this is the key to Trump's greatness.

 

[rightwinger]

Only because it's been subsidized. SS is not self-sufficient. Like all Ponzi schemes, SS is unsustainable.

90 freaking years is pretty sustainable

 

[martybegan]

Not disagreeing with any of that.

Edit: Anyone remember American Express? It started the credit card biz, and started out with highly qualified borrowers and low interest rates.

What I would like to see is credit card rates tied to someone's actual credit score. As you said AE used to be the one to go to, but now it seems it's just the same blanket rate for everyone.

I have an 810 credit score, I think I am a low risk for not paying my credit card bill.

 

[Mashmont]

90 freaking years is pretty sustainable

You don't read responses. This is why you're a troll.

 

[The Sage of Main Street]

Then this will be solved by a law demanding the companies issue cards regardless of the risk.

Democrats Drained Away Like Druids

Not if we make sure that, by any means necessary, Liberals lose all power forever. Anyone who objects, "But then the Left will do this," is secretly on the side of that primitive political superstition.

 

[The Sage of Main Street]

I know you love big government, but just answer the question:

Make the Plutocrats Pay the Same Percentage as Everybody Else

Anyone who objects being raped by the private-sector Scrooges not providing pensions is accused of Statism by you bootlicking boytoys of the Big Boys.

 

[WorldWatcher]

I would assume the credit card companies will then lower the spending cap down to an acceptable level, dependent on your credit rating. I don't see a problem with that.

I would assume that for high risk people, they will require "secured" credit cards where the available credit has to be secured with a pre-paid deposit.

For example a Bank will issue a $1000 Credit Card based on a minimum $1000 in a Saving Account, and the savings is "locked" to the balance remaining. For example if you owe $400, the most you are able to take out of savings is $600 and the card limit is automatically lowered.

WW