Saturday, September 20, 2008

Bush Wants $700 Billion For Bail Out

Bush wants Congress to authorize as much as $700 billion to buy troubled mortgage-related assests. This is an obscene transfer of money from tax payers to financial institutions. I think there is a better was to handle this crisis and it should have been done a long time ago.

CONGRESS NEEDS TO OUTLAW PREDITORY BUSINESS PRACTICES. For example, I am willing to bet that almost everyone who can't pay their mortgages also has a pile of credit card debt and that they are paying like 29.9% interest on that borrowed money. That's obscene. Credit card companies should only be allowed to charge a maximum of 12% interest. They should not be allowed to raise the interest rate on existing debt. They should not be allowed to charge interest on fines. And if there is debt at more than one interest rate on the card, the debt should be rotated out in the order that it was acquired, rather than the lowest interest rate debt first.

Putting a 12% cap on credit card debt would put hundreds of dollars a month in the hands of many struggling homes owners that could keep them from going into foreclosure.

And what about those cell phone contracts? And how about reinstating the uptake rule?


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