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supermike80

Now this is interesting. Cap on cc interest

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1 minute ago, NCCommish said:

The post office handled basic banking for a long time. In fact in today dollars they had over 50 billion is assets in the program. The advent of the FDIC and the interest rate being capped at PO banks they lost out to banks and they were ended in 1969. But no one pays much interest these days and the unbanked need an option.

I'm actually fine with the PO being a depositor institution - checking/savings.  What I fear is that we'll delve into the realm of "low interest loans for those that need it most" and leave the taxpayer to pay for the non-payments.

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On 5/13/2019 at 5:47 AM, NCCommish said:

Maybe they need to stop expecting their earnings to increase forever. It isn't sustainable. This is the problem with Wall Street running things. At some point being profitable should be enough. Being more profitable every year is a recipe for the issues we have today.

Yep, and what also doesn’t often get mentioned but the CC companies get paid on both sides of the transaction.  That’s nuts.  So much so that the company I work for has asked me to run point on testing not accepting credit cards at a few of my locations.  

Left unchecked greed runs amok.  That doesn’t alleviate personal responsibility but where is the corporate responsibility?

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3 hours ago, Jackstraw said:

Now you're getting it. Make credit boring again. 

cash everything ?

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1 hour ago, Sand said:

I'm assuming this is sarcasm, even considering the source. There is no way you can think this is the outcome.

A little bit. This nation collectively owes a trillion dollars in college debt. I'm a lot closer to clamping down on money lenders than givign them carte blanche to rape and pillage to their hearts content. 

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3 minutes ago, Stealthycat said:

cash everything ?

You understand we can have credit without predatory lending right? The two are not mutually exclusive. 

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49 minutes ago, dkp993 said:

So much so that the company I work for has asked me to run point on testing not accepting credit cards at a few of my locations.  

Left unchecked greed runs amok.  

If enough stores do this the fees will magically go back down.  Or there will be competition that takes a different tack.  These bubbles can and do pop.

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2 minutes ago, Jackstraw said:

A little bit. This nation collectively owes a trillion dollars in college debt. I'm a lot closer to clamping down on money lenders than givign them carte blanche to rape and pillage to their hearts content. 

You realize this is mostly the US govt., correct?

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2 minutes ago, Jackstraw said:

You understand we can have credit without predatory lending right? The two are not mutually exclusive. 

I guess its how you define predatory ... nobody makes you use a CC, take loans etc - that's choice isn't it ?

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Just now, Sand said:

You realize this is mostly the US govt., correct?

YEAH. which is even more disgusting. Dems brought a bill to reduce rates and guess who killed it? 

 

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Shoot I guess theres a lot more support for usury than I thought. 

Why do y'all reflexivey defend this stuff? To see the lib tears? 

Plenty of "real americans" getting abused too ya know. 

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1 minute ago, Jackstraw said:

YEAH. which is even more disgusting. Dems brought a bill to reduce rates and guess who killed it? 

 

Do you think student loan interest rates are at "raping and pillaging" levels?  I'm having trouble understanding your points.  Perhaps because you're being rather hyperbolic.

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2 minutes ago, Jackstraw said:

YEAH. which is even more disgusting. Dems brought a bill to reduce rates and guess who killed it? 

 

What is the interest rate on federal student loans?  It must be pretty high since you used this program as an example of raping and pillaging.

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2 minutes ago, Sand said:

If enough stores do this the fees will magically go back down.  Or there will be competition that takes a different tack.  These bubbles can and do pop.

Sure this is true is certain situations, though I believe this is not something that will happen with CC’s. Americans are to debt addicted to ever really allow it to take hold, this it puts businesses in the position of needing to accept CC’s to not turn customers away.   My business is unique and there might be some room to control this cost but it’s a pretty small subset.  

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1 minute ago, Juxtatarot said:

Do you think student loan interest rates are at "raping and pillaging" levels?  I'm having trouble understanding your points.  Perhaps because you're being rather hyperbolic.

It’s not the rate that’s the problem.  It’s the principal on the loans.

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Just now, dkp993 said:

Sure this is true is certain situations, though I believe this is not something that will happen with CC’s. Americans are to debt addicted to ever really allow it to take hold, this it puts businesses in the position of needing to accept CC’s to not turn customers away.   My business is unique and there might be some room to control this cost but it’s a pretty small subset.  

Narrator:  Buy V, hold forever.

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Just now, Juxtatarot said:

Do you think student loan interest rates are at "raping and pillaging" levels?  I'm having trouble understanding your points.  Perhaps because you're being rather hyperbolic.

Yes. If the US government is turning a profit......ANY PROFIT....off student loans it is reprehensible. Education is an undeniable public good. This is in affect taxing people on what we want them to do. 

By the way private institutions are doing the actual lending....and profiting.  

 

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Just now, jonessed said:

It’s not the rate that’s the problem.  It’s the principal on the loans.

Then I think we're referring to tuition amounts.  

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Just now, Sand said:

Narrator:  Buy V, hold forever.

Sure.  Not really the topic but not bad advice.  

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1 minute ago, Jackstraw said:

 

By the way private institutions are doing the actual lending....and profiting.  

 

Do you mean servicing?

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9 minutes ago, Jackstraw said:

Yes. If the US government is turning a profit......ANY PROFIT....off student loans it is reprehensible. Education is an undeniable public good. This is in affect taxing people on what we want them to do. 

By the way private institutions are doing the actual lending....and profiting.  

 

Quote

Under FCRA accounting procedures, the federal student loan program will turn a small profit of $28 billion over the coming decade, according to CBO. But using fair-value accounting, which incorporates the full market risk of the loans, taxpayers will lose a whopping $183 billion over the same time period.

https://www.forbes.com/sites/prestoncooper2/2017/08/04/why-government-doesnt-profit-from-student-loans/#4eca2702eb63

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3 minutes ago, Jackstraw said:

Yes. If the US government is turning a profit......ANY PROFIT....off student loans it is reprehensible. 

It has been established that Pell grants have mostly gone to fuel tuition increases instead of subsidizing costs.  They just fed the beast.  It's a very good question what the interest rate on these loans should be.  We have a wonderful analogy going back to 2008 showing what artificially low interest rates did to housing.  (i.e. you get effects you may not want by distorting markets).  These unintended deleterious effects on markets aren't always self-evident, but they can be profound.  They can go largely unnoticed as a root cause until they do something spectacular, like blow up the housing market and cause a deep recession.

 

5 minutes ago, dkp993 said:

Sure.  Not really the topic but not bad advice.  

It was.  I was agreeing with you that Americans love CCs and that isn't going away anytime soon.  The costs are now embedded into the system to such an extent that I don't see that changing anytime soon.

And it makes for a compelling case for buying a large moat business like this.

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32 minutes ago, jonessed said:

It’s the principal on the loans.

how does one get principal on loans? 

choices on borrowing ? 

 

again - back to choices isn't it ?

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1 hour ago, jonessed said:

It’s not the rate that’s the problem.  It’s the principal on the loans.

"Big Education"  is doing a lot of raping and pillaging

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5 minutes ago, PhantomJB said:

I'm confused. If someone pays off their balance every month why should the interest rate matter?

yes, it's amazing the CC companies stay in business with everybody paying off their balance every month...they should make the rates 200% interest per month..../sarc

Edited by Rove!

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7 minutes ago, Rove! said:

yes, it's amazing the CC companies stay in business with everybody paying off their balance every month...they should make the rates 200% interest per month..../sarc

I would settle for Bernie picking Suze Orman as his running mate.

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2 hours ago, Rove! said:

"Big Education"  is doing a lot of raping and pillaging

Because they can.  The federal government backs everything.

With few exceptions, sending a graduate out with $200K+ in debt and a bachelor’s degree is insanity.  You might as well tie a lead ball to their leg.  That’s on the schools.

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