The bank (republican) owns you!

[ckramer]

Americans are headed into Debt Slavery, one credit card and one house at a time. To make sure they get there, Congress is rushing though a major reform of the Federal Bankruptcy Law. Since banks have been posting record profits, one must wonder why there is such a rush to prevent the little guy from getting a “clean slate” in Chapter 7. Indeed, when sophisticated lenders, with millions of clients and infinite amounts of cash, continue to offer credit cards and increased credit lines, why is it that they are shocked when someone can’t afford to pay the interest or late charges on their credit card bill due to illness or loss of a job. Even with bankruptcy filings – over 1.5 million a year – the banks claim to be totally caught off-guard. The banks claim they need protection from sophisticated deadbeats and can afford to pay for protection by contributing to Political Action Committees. Moreover, even though the banks know how to price risk, and charge double-digit interest rates, they’re livid when people who fall on hard times can get away with not paying them back with interest.

Congress seems determined to make sure that individuals enter the world of Debt Slavery and want the courts to be the collection agency. Bankruptcy reform means many a poor soul will be hounded for years through a Chapter 13 filing, instead of being given a fresh start in a Chapter 7 filing. If you file Chapter 13, any cash you make will be “sucked out” of your paycheck and go towards your debts for many years to come. You can forget about paying off a mortgage or saving for retirement. (Surprisingly, these new bankruptcy laws will still allow corporations to stiff their creditors. Indeed, how could “The Donald” afford to buy and/or maintain his mansions without stuffing his junk bond holders with his casinos in Atlantic City?) Debt Slavery is a cornerstone of the Ownership Society. Why? Because now the bank owns you!

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[Bluebear]

1. Thank you JOE BIDEN

grrrrrr

[Mandate My Ass]

2. This bill specifically targets blameless debtors

for the simple reason that a banktruptcy judge will be more lenient toward people who were forced into bankruptcy by illness or unemployment rather than irresponsibility. The means test is simply a way to prevent the judge from being a judge. He is now a collection agent for the credit card companies paid for by taxpayer dollars.

The bulk of the record 300 billion in profits made by these companies last year came from gouging those whose credit had taken a turn for the worse even if they never missed a credit card payment. Penalty interest rates, once imposed, are permanent.

The Dayton ammendment, which would have capped interest rates at a whopping 30% just failed. All 54 repukes and 18 dems think it's OK to allow interest rates up to 1059%

It has been determined that it would take 50 years to pay off $10,000 debt at 17% interest if you make the minimum payment each month. Congress just voted to allow the interest rates to be whatever the credit card company wants them to be.

[Warpy]

3. When credit cards started, those 18.5% interest rates

were set because the loans were unsecured by property that could be repossessed. They were allowed to charge high interest rates because the loans were high risk. They made a huge profit on people who didn't pay the entire balance off that month, people who charged vacations and took six months to pay them off. It worked.

Then came the oil shocks of the 70s and the double digit interest rates that threw us into a deep recession. Credit card companies were outraged that their rates were now as low or lower than those for secured loans.

Enter the scam of the minimum payment. Hey! You could float a lifestyle of a millionaire, and it would cost you less than a hundred bucks a month! (You wouldn't be debt free for 40 years at that rate, but let's not spoil the party). Since those high interest rates hadn't been enough during those recession years, they tacked on all sorts of junk fees for every minor infraction. Now they've managed to ram through legislation that allow them to arbitrarily raise interest rates, so that plasma TV that was a good deal at 7.9% is now costing you up to 35%!

Credit cards are a scam. They're not worth the convenience. A debit card will serve as well, even for online purchases, and you won't run into trouble with it. A personal loan from the bank will give you money at a lower rate and a contract that says that rate can't be jacked up for the life of the loan. Folks, credit cards are a BAD DEAL!!!

And yes, I got rid of mine in January, 1991, when those junk fees appeared.

[rman]

4. "The Bankers own the Earth."

"The modern banking system manufactures money out of nothing. The process is perhaps the most astounding piece of sleight-of-hand that was ever invented. Banking was conceived in iniquity, and was born in sin.
The Bankers own the Earth.
Take it away from them, but leave them the power to create deposits and with the flick of the pen, they will create enough deposits to buy it back again.
However, take it away from them, and all the great fortunes like mine will disappear, and they ought to disappear, for this would be a happier and better world to live in.
But if you wish to remain the slaves of Bankers, and pay the cost of your own slavery, let them continue to create deposits."
-- President of The Bank of England Sir Josiah Stamp, 1920, University of Texas