Just a little while ago our gallant Democrat Senate - and I quote - "easily" defeated Bernie Sanders' bill to put a 15% cap on credit card interest rates the same day that CBS did a segment on the banks' sudden raising of already usurious rates on some of their best consumer customers with no warning of any kind. The reason was - partly - that the Sens have their own bill almost ready for passage.
Despite complaints that banks and credit card companies are gouging customers by charging outrageous interest rates, the Senate on Wednesday easily turned back an effort to cap interest rates at 15 percent.
The effort by Senator Bernie Sanders, the Vermont independent, drew only 33 votes and needed 60, with a bipartisan group of 53 senators opposing it as the Senate pushed its credit card overhaul toward the finish line.
See, the Big Senate bill don't have no stinkin interest rate caps. Uh-uh. That was just too much for our bankster puppets to swallow. Or at least, that's what the Puppet Masters told them to say....
The banking industry, which had some heavy-weight representatives monitoring the vote off of the Senate floor, warned that an interest rate limit could cause a sour reaction in the financial markets.
Yah gotta love them Sens. Making sure their friendly neighborhood banking lobbyist was right in the corridor outside the Senate Chamber so they could get fresh new talking points if they ran into trouble selling waverers. Not that there were any. No no. This was a no-brainer. I mean, the Boss was right out in the corridor, fer dawg's sake.
Consumer borrowing plunged in March at the fastest pace in 18 years as Americans put away their credit cards and hoarded cash amid the worst recession in decades.
The Federal Reserve said Thursday that consumer borrowing dropped 5.2 percent in March, the biggest decline since an 8.1 percent fall in December 1990.
In dollar terms, consumer borrowing plunged by $11.1 billion. That's the largest dollar amount on records dating to 1943, and more than three times the $3.5 billion drop that economists expected.
The borrowing category that includes credit cards dropped 6.8 percent in March after a 12.1 percent plunge in February. The category that includes auto loans fell 4.2 percent after rising by 1.2 percent in February.
We ain't got no more money might be the problem what with wagez bein flat for a quarter century and all the money flowing, you know, to the top 1%.
Got it now?
- Old Rules: Borrowing goes down, interest rates go down to attract more borrowers.
- New Rules: Borrowing goes down, interest rates go up to keep the same high profits rolling with fewer actual borrowers.
Mr. Sanders said the card companies and banks were engaged in conduct that could get others hauled into court. He said one-third of all credit card holders are paying interest above 20 percent and as high as 41 percent.
“When banks are charging 30 percent interest rates, they are not making credit available,” said Mr. Sanders, who noted credit unions are limited to 15 percent. “They are engaged in loan-sharking.”
Yup. That's what it's called except thanks to Joe Biden, our new Veep, it's legal and you can throw people in debtors' prison if they can't pay up.
Oh wait. That's next year.