Tuesday, February 10, 2009

Bank Rescue

If the banks want rescuing by the federal government, then they should have to agree to a couple of conditions:

1) Make it harder for people to get credit. I'm not talking about people with regular jobs and a steady income. I'm talking about giving credit cards to high school students who aren't even working. I'm talking about giving a $300,000 mortgage to someone who makes $28,000 a year. I'm talking about bringing back some rationality to this mess.

2) Force the banks and credit card companies to cap interest rates at 10% above prime as a maximum. No more Best Buy credit cards at 28% interest. No more Visa cards with 18% interest. If these corporations can't survive on 10% juice, then they shouldn't be in business in the first place. Certainly if they followed my first suggestion, they wouldn't be making as many bad risk deals, so their defaults and bankruptcies should decrease (which is their usual excuse for charging so much).


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