Just Another Brick in the Wall

Finally, the federal government is going to step in and make the credit companies play fair - or are they? The Federal Reserve has proposed new regulations on credit providers to make it easier for people on tight budgets to actually pay off their credit cards. However, every expert in the field agrees that by the time the legislation is done with the assault by lobbyist, it won't likely be worth the time they put into making the laws. As a matter of fact, the pork they will attach to the bill will surely be more than the money they will save those for whom the bill was intended to protect.

There are three problems facing this legislation:

First, the whole notion of curbing 'unfair practices' by the credit companies. What is unfair for the consumer is not unfair to the credit companies. This is clearly denoted in the following quote from the Fox News article:

Ken Clayton, senior vice president of card policy for the American Bankers Association, said the industry will fight the new proposals, describing them as "aggressive regulatory intervention in the marketplace that will result in higher prices and less consumer credit."

He said the change "basically says that we can't price for risk" and that if higher risk borrowers don't bear the costs, those costs will be passed along to other consumers."

To which I say to Ken and his cronies: Lower consumer debt is EXACTLY what we need! And if you find a person is at such a high risk of not paying back the money they borrow, why would you offer to extend them credit in the first place?

Before he can baffle you with BS, I'll tell you - because the way the laws are set, they can legally rape you for the rest of your life. Enough is enough America! Wake up, cut up (your cards) and stand up for your right to be treated as an equal to the Bill Gates, Paris Hiltons and Warren Buffets of the world. If the credit companies aren't going to treat you fairly, stop giving them the means by which they keep you down.

Second, although I'm certain that the Fed intends well, politicians make the laws and their campaigns are funded by big business. As much as they may want to help the less fortunate, they can't. If they did, they couldn't get re-elected because the source of campaign funds would dry up overnight. Until we demand that campaign financing be reformed in a way that prevents special interests from buying politicians, We The People will never, honestly, be represented by our elected officials.

Lastly, this is an election year. We do face some significant economic problems, which I believe are principally caused by high oil prices and the banking industry (there are other factors, but these are primary) that are legitimate and necessary to discuss in the election process. However, what we will get is political posturing and finger pointing. "The Republicans want blah, blah, blah...The Democrats want blah, blah, blah..." In the end it's going to be more about getting their candidate elected (or themselves re-elected) than what is truly in the interest of the people electing them.