Posts Tagged ‘Chase’

Liberals Take Us On Another Good-Intentioned Road To Hell With Credit Card ‘Reform’

February 24, 2010

Have you ever been on the receiving end of an “I-told-you-so” moment?  You know, where you’re about to do something, and somebody warns you, “If you do that, X will happen” where “X” is a bad thing.  And then sure enough, X happens?

The Democrats live in that world.

They get through it by constantly lacking the wisdom to admit they screwed up.  That way they can keep making the same mistakes over and over again, and never have to admit their mistakes.

Well, let’s take another ride on the “I-told-you-so” train:

Credit Card Issuers Raising Rates Ahead of New Law
By Nancy Trejos
Washington Post Staff Writer
Thursday, July 2, 2009

Credit card companies are raising interest rates and fees seven months before new rules go into effect that will limit their ability to do so, much to the irritation of Congress and consumer advocates.

Chase, for instance, will raise the minimum payment required of some of its customers from 2 percent to 5 percent of the statement balance starting in August. Chase and Discover have increased the maximum fee charged for transferring a balance to the card to 5 percent of the amount, up from 3 and 4 percent, respectively. Bank of America last month raised the transaction fee for balance transfers and cash advances from 3 to 4 percent. Card issuers including Bank of America and Citi also continue to cut limits and hike up rates, which they have been doing with more frequency since January.

“This is a common practice and will continue to be common, because issuers can do these things for really no reason until February,” said John Ulzheimer, president of consumer education for Credit.com, which tracks the industry. “It’s what I call the Credit Card Trifecta — lower limits, higher rates, higher minimum payments.”

It’s not just the top card issuers making changes. Atlanta-based InfiBank, for example, will raise the minimum annual percentage rate it charges nearly all of its customers in September “in order to more effectively manage the profitability of our credit card account portfolio in a very challenging economic environment,” said spokesman Kevin C. Langin.

The flurry of activity, which the banks say is necessary to shore up their revenue losses, has irked members of Congress, who passed a new credit card law, which was signed by President Obama in May. The law, among other things, would prevent card companies from raising rates on existing balances unless the borrower was at least 60 days late and would require the original rate to be restored if payments are received on time for six months. The law would also require banks to get customers’ permission before allowing them to go over their limits, for which they would have to pay a fee.

Yesterday, Sen. Charles E. Schumer (D-N.Y.) once again requested that the Federal Reserve invoke its emergency powers to place a limit on interest rate hikes.

“This is what many of us feared about a law that didn’t take effect right away,” Schumer said. “It was never going to take this long for the credit card companies to get ready for the new reforms. Instead, issuers are using the delay in the effective date to wring more dollars out of their customers. It is against the spirit of the law, and it is just plain wrong.”

Rep. Carolyn B. Maloney (D-N.Y.) said the recent rate and fee hikes were “unfair and deceptive and must be stopped.”

“Capricious actions like these are why Congress overwhelmingly passed, and President Obama signed, my credit card reform bill: to level the playing field on behalf of consumers,” she said.

Bank executives had warned that the new law would force them to increase rates and fees because it would keep them from properly managing borrowers’ risk. The argument is that if banks can’t raise rates on riskier customers, they will have to raise rates on all.

Scott Talbott, senior vice president of government affairs for the Financial Services Roundtable, an industry group, said there are two reasons for the rate increases. First, he said, consumer credit scores, which banks use to determine if they should lend and at what price, have decreased. Second, the cost of providing credit has increased. “Once the new law is in effect, we anticipate a further reduction in the availability of credit and additional increases in the cost of credit,” he said.

Banks have been hit with a record number of charge-offs, or debts they give up on because the borrowers have no way of paying them back. In June, credit card losses hit a record 10.44 percent, according to Fitch Ratings.

Increasing rates and fees is one way they can make up for lost revenue. Since January, of the six major card issuers, Citi has had the largest increase in rates for purchases, according to a report by Credit Suisse.

The boldfaced paragraph in red font says it all.  And the paragraph directly beneath the red-font paragraph explains why the Democrats’ interference in the free market and in private businesses’ business won’t do anything but hurt the overall system.  Because they didn’t do anything to fix the actual problems.

Democrats are so shocked and outraged about something that they were repeatedly TOLD would happen.

Which makes it absurd, asinine, demagogic outrage, at best.

In tough times, credit card companies are likely to raise rates to squeeze more revenue out of a hurting market, yes.  But many of those companies would have reduced rates and fees as the market improved in order to compete with other companies and attract more customers.

But those credit card companies won’t be doing that now.  Why?  Because Democrats have essentially locked those shockingly high- rate and fee-hikes in.  They went up, and up, and up.  But they will never go back down until those stupid Democrat laws are rescinded.

This is precisely what happened during the Great Depression, and why it dragged on and on and on in America when virtually every other nation had long since bounced back [see the World Economic Survey: Eighth Year, 1938/39 (Geneva: League of Nations, 1939), p. 128].  American liberals just kept passing one market-killing measure after another that prevented businesses, the markets, or the economy in general from reaching equilibrium and bouncing back.

In the situation above, credit card companies are being forced to jack up their rates, jack up their fees, cut credit lines, and adjust their cardholder policies to preclude riskier applicants from being able to borrow in the first place, because the rules Democrats forced on them won’t allow them to manage or balance their own risks in the future.

In other words, the credit card companies have joined the 77% of investors in this country who view Obama and his market-killing policies as “anti-business.”

So if you find that your rates have skyrocketed, if you find that your minimum payment has tripled, if you find that you’re suddenly paying a $500 annual fee, if you find that your credit line has been chopped in half, don’t blame the credit card companies.  Blame Obama.  He’s the one who screwed you.  Because he wouldn’t allow credit card companies to raise rates on the risky customers, and insisted that instead they raise rates on everybody.

These drastic changes from your credit card lender is a direct result of Obama’s policies.

It is often said that “the road to hell is paved with good intentions.”  I can only imagine that whoever coined this phrase to begin with had the Democrat Party in mind.

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Corrupt Financier Bernard Madoff Supported Democrats

October 6, 2009

Take a gander at king of thieves Bernard Madoff’s political contributions.  Then explain to me how the Republican Party is the party of greed.

The top three donations to the Democrats all dated 03/18/09, by the way, are in fact three separate donations (totaling over $75,00).

Contributor Candidate or PAC Amount Date FEC Filing
MADOFF, BERNARD L
NEW YORK, NY 10022
DEMOCRATIC SENATORIAL CAMPAIGN COMMITTEE (D) $-25,000
primary
03/18/09
MADOFF, BERNARD L
NEW YORK, NY 10022
DEMOCRATIC SENATORIAL CAMPAIGN COMMITTEE (D) $-25,000
primary
03/18/09
MADOFF, BERNARD L
NEW YORK, NY 10022
DEMOCRATIC SENATORIAL CAMPAIGN COMMITTEE (D) $-25,000
primary
03/18/09
MADOFF, BERNARD L
NEW YORK, NY 10022
DEMOCRATIC SENATORIAL CAMPAIGN COMMITTEE (D) $-25,000
primary
03/18/09
Madoff, Bernard L. Mr.
New York, NY 10021
SECURITIES INDUSTRY AND FINANCIAL MARKETS ASSOCIATION POLITICAL ACTION COMMITTEE $-10,000
primary
02/27/09
MADOFF, BERNARD L
NEW YORK, NY 10022
BERNARD L. MADOFF INVEST.-SEC./CHAI
DEMOCRATIC SENATORIAL CAMPAIGN COMMITTEE (D) $25,000
primary
09/12/08
Madoff, Bernard L. Mr.
New York, NY 10021
Bernard L. Madoff Investment Securi
SECURITIES INDUSTRY AND FINANCIAL MARKETS ASSOCIATION POLITICAL ACTION COMMITTEE $5,000
primary
08/20/08
MADOFF, BERNARD
NEW YORK, NY 10022
SELF EMPLOYED/INVESTOR
MERKLEY, JEFFREY ALAN (D)
Senate – OR
JEFF MERKLEY FOR OREGON
$2,300
primary
04/24/08
Madoff, Bernard L.
New York, NY 10021
SAUL, ANDREW MARSHALL (R)
House (NY 19)
SAUL FOR CONGRESS INC
$-2,300
primary
12/05/07
Madoff, Bernard L
New York, NY 10021
Bernard Madoff Investment/Chairman
LAUTENBERG, FRANK R (D)
Senate – NJ
LAUTENBERG NJ VICTORY COMMITTEE
$300
primary
07/20/07
Madoff, Bernard L
New York, NY 10021
Bernard Madoff Investment/Chairman
LAUTENBERG, FRANK R (D)
Senate – NJ
LAUTENBERG NJ VICTORY COMMITTEE
$5,000
primary
07/20/07
Madoff, Bernard L
New York, NY 10021
Bernard Madoff Investment/Chairman
LAUTENBERG, FRANK R (D)
Senate – NJ
LAUTENBERG NJ VICTORY COMMITTEE
$2,300
primary
07/20/07
Madoff, Bernard L.
New York, NY 10021
Bernard L. Madoff Investment/Chairm
SAUL, ANDREW MARSHALL (R)
House (NY 19)
SAUL FOR CONGRESS INC
$2,300
primary
07/10/07
Madoff, Bernard L Mr.
New York, NY 10021
Bernard L. Madoff Investment Securi
SECURITIES INDUSTRY AND FINANCIAL MARKETS ASSOCIATION POLITICAL ACTION COMMITTEE $5,000
primary
05/24/07
MADOFF, BERNARD L
NEW YORK, NY 10022
BERNARD L. MADOFF INVEST.-SEC./CHAI
DEMOCRATIC SENATORIAL CAMPAIGN COMMITTEE (D) $25,000
primary
05/04/07
Madoff, Bernard L Mr.
New York, NY 10021
Bernard L. Madoff Investment Securi
SECURITIES INDUSTRY AND FINANCIAL MARKETS ASSOCIATION FUND A $5,000
primary
10/17/06
MADOFF, BERNARD L
NEW YORK, NY 10022
BERNARD L. MADOFF INVEST. SEC./CHAI
DEMOCRATIC SENATORIAL CAMPAIGN COMMITTEE (D) $25,000
primary
09/30/06
Madoff, Bernard L Mr.
New York, NY 10021
Bernard L. Madoff Investment Securi
SECURITIES INDUSTRY AND FINANCIAL MARKETS ASSOCIATION FUND A $5,000
primary
09/22/05
MADOFF, BERNARD L
NEW YORK, NY 10021
BERNARD L MADOFF INVEST SEC
DEMOCRATIC SENATORIAL CAMPAIGN COMMITTEE (D) $25,000
primary
05/09/05
Madoff, Bernard
New York, NY 10021
Madoff Investments/Chairman
MATHESON, JAMES (D)
House (UT 02)
MATHESON FOR CONGRESS
$250
general
10/18/04
Madoff, Bernard L
New York, NY 10021
FROST, MARTIN (D)
House (TX 32)
MARTIN FROST CAMPAIGN COMMITTEE
$250
general
10/15/04
Madoff, Bernard
New York, NY 10021
Self-employed/Banker
HOOLEY, DARLENE (D)
House (OR 05)
HOOLEY FOR CONGRESS
$250
general
10/15/04
MADOFF, BERNARD L
NEW YORK, NY 10021
BERNARD L MADOFF INVESTMENTS
SCHUMER, CHARLES E (D)
Senate – NY
FRIENDS OF SCHUMER
$1,000
general
08/18/04
MADOFF, BERNARD L
NEW YORK, NY 10021
BERNARD L MADOFF INVESTMENTS
SCHUMER, CHARLES E (D)
Senate – NY
FRIENDS OF SCHUMER
$1,000
primary
08/18/04
Madoff, Bernard L Mr.
New York, NY 10021
Madoff (Bernard L.) Investment Secu
SECURITIES INDUSTRY AND FINANCIAL MARKETS ASSOCIATION FUND A $5,000
primary
07/08/04
Madoff, Bernard L
New York, NY 10021
Madoff Investments/Chairman
MARKEY, EDWARD J MR. (D)
House (MA 07)
MARKEY COMMITTEE, THE
$2,000
primary
06/17/04
Madoff, Bernard L
New York, NY 10021
Madoff Investments/Chairman
MARKEY, EDWARD J MR. (D)
House (MA 07)
MARKEY COMMITTEE, THE
$2,000
general
06/17/04
MADOFF, BERNARD
NEW YORK, NY 10021
BERNARD MADOFF INVESTMENTS
LAUTENBERG, FRANK R (D)
Senate – NJ
LAUTENBERG FOR SENATE
$1,000 02/18/04
Madoff, Bernard L
New York, NY 10021
Bernard L Madoff/Chairman
GEPHARDT, RICHARD A (D)
President
GEPHARDT FOR PRESIDENT INC.
$2,000
primary
09/23/03
MADOFF, BERNARD
NEW YORK, NY 10021
BERNARD MADOFF INVESTMENTS
WYDEN, RONALD LEE (D)
Senate – OR
WYDEN FOR SENATE
$2,000
general
03/25/03
MADOFF, BERNARD
NEW YORK, NY 10021
BERNARD MADOFF INVESTMENTS
WYDEN, RONALD LEE (D)
Senate – OR
WYDEN FOR SENATE
$2,000
primary
03/25/03
MADOFF, BERNARD L
NEW YORK, NY 10021
BERNARD L MADOFF INVESTMENTS
SCHUMER, CHARLES E (D)
Senate – NY
FRIENDS OF SCHUMER
$1,000
general
04/08/02
MADOFF, BERNARD L
NEW YORK, NY 10021
BERNARD L MADOFF INVESTMENTS
SCHUMER, CHARLES E (D)
Senate – NY
FRIENDS OF SCHUMER
$1,000
primary
04/08/02
Madoff, Bernard L.
New York, NY 10022
Bernard L. Madoff P.C./Chairman
RANGEL, CHARLES B (D)
House (NY 15)
RANGEL FOR CONGRESS
$1,000
primary
08/30/01
MADOFF, BERNARD
NEW YORK, NY 10022
BERNARD L MADOFF INVESTMENT SECURIT
SECURITIES INDUSTRY AND FINANCIAL MARKETS ASSOCIATION FUND A $2,000
primary
11/03/00
MADOFF, BERNARD L
NEW YORK, NY 10021
BERNARD MADOFF INVESTMENT SEC
FOSSELLA, VITO (R)
House (NY 13)
COMMITTEE TO RE-ELECT VITO FOSSELLA
$1,000
primary
04/20/00
MADOFF, BERNARD L
NEW YORK, NY 10021
BERNARD MADOFF INC
OBEY, DAVID R. (D)
House (WI 07)
A LOT OF PEOPLE FOR DAVE OBEY
$1,000
primary
03/10/00
MADOFF, BERNARD
NEW YORK, NY 10022
CHAIRMAN
CLINTON, HILLARY RODHAM (D)
Senate – NY
HILLARY RODHAM CLINTON FOR US SENATE COMMITTEE INC
$1,000
primary
01/13/00
MADOFF, BERNARD
NEW YORK, NY 10022
BERNARD L MADOFF INVESTMENT SECURIT
SECURITIES INDUSTRY AND FINANCIAL MARKETS ASSOCIATION FUND A $2,000
primary
12/20/99
MADOFF, BERNARD
NEW YORK, NY 10022
BERNARD L MADOFF INVESTMENT SECURIT
SECURITIES INDUSTRY AND FINANCIAL MARKETS ASSOCIATION FUND A $2,000
primary
12/20/99
MADOFF, BERNARD
NEW YORK, NY 10021
MADOFF SECURITIES
CORZINE, JON S (D)
Senate – NJ
CORZINE 2000 INC
$1,000
primary
08/24/99
Madoff, Bernard Mr.
New York, NY 10021
Bernard Madoff Investment Securitie
BRADLEY, BILL (D)
President
BILL BRADLEY FOR PRESIDENT INC
$1,000
primary
04/26/99
MADOFF, BERNARD L
NEW YORK, NY 10021
BERNARD L MADOFF INVESTMENT SECURIT
SCHUMER, CHARLES E (D)
Senate – NY
VICTORY IN NEW YORK
$1,000
primary
10/30/98
MADOFF, BERNARD L
NEW YORK, NY 10022
BERNARD L MADOFF PC
RANGEL, CHARLES B (D)
House (NY 15)
RANGEL FOR CONGRESS
$1,000
general
10/23/98
MADOFF, BERNARD L
NEW YORK, NY 10021
SELF-EMPLOYED
D’AMATO, ALFONSE M (R)
Senate – NY
FRIENDS OF SENATOR D’AMATO (1998 COMMITTEE)
$1,000
general
09/21/98
MADOFF, BERNARD
NEW YORK, NY 10022
CROWLEY, JOSEPH (D)
House (NY 07)
CROWLEY FOR CONGRESS
$-500
primary
08/26/98
MADOFF, BERNARD
NEW YORK, NY 10022
BOND BROKER
CROWLEY, JOSEPH (D)
House (NY 07)
CROWLEY FOR CONGRESS
$500
primary
08/04/98
MADOFF, BERNARD
NEW YORK, NY 10021
SCHUMER, CHARLES E (D)
Senate – NY
SCHUMER ’98
$-300
primary
06/29/98
MADOFF, BERNARD L
NEW YORK, NY 10022
BERNARD L MADOFF INVESTMENT SECURIT
SCHUMER, CHARLES E (D)
Senate – NY
SCHUMER ’98
$1,000
general
05/22/98
MADOFF, BERNARD L
NEW YORK, NY 10022
BERNARD L MADOFF INVESTMENT SECURIT
SCHUMER, CHARLES E (D)
Senate – NY
SCHUMER ’98
$1,000
primary
05/22/98

When you take a look at who the nation’s biggest scumbags and crooks actually support, it should set to rest the lie that the Republican Party is the party that advanced these people’s greedy self-interests.

Take a look at Norman Hsu, who was a major Democrat fundraiser – and a major Democrat scumbag.  Take a look at Hassan Nemazee.  The Democrats have all sorts of slimeballs who make Jack Abramoff – as bad as he was – look like a chump change operator.

And you maintain that the REPUBLICANS are the party of greed and fraud?  And you want to give DEMOCRATS total power to control everything?  We’re about to see that actions have consequences.

Take a look at your corrupt new Chicago president.  Senator Barack Obama was the largest single recipient of corrupt and collapsed Fannie Mae campaign contributions over the last 20 years – even though he had only been in the Senate for four of those 20 years.  There is no question that Fannie Mae was at the epicenter of the subprime mortgage disaster (see here for a concise summary of the AEI article) that created the financial meltdown in 2008.  Even the liberal Newsweek acknowledges that “Fannie Mae defanged laws that could have prevented the subprime mess.”  And how did they do that?  By supporting lawmakers like Barack Obama who took their side.

Conservatives repeatedly tried – to no avail in the face of united Democrat opposition – to stop the monster (that Democrats supported, and received support from) from growing and then collapsing and taking the economy along with it.

Now Democrats are on their way to rebuilding the monster so that we can have another collapse down the road.

Obama was also right at the head of the line in campaign handouts from corrupt and collapsed Wall Street player Lehman Brothers.  Lehman Bros. was one of the worst players in the subprime game that made them so much money before exploding – and imploding the economy.

Obama had all sorts of “subprime buddies.” Obama was getting huge money from all of the very worst of the worst Wall Street players who brought us down.  You should seriously take a look at all the greedy and Wall Street entities and executives who piled money into Obama’s hands and ask yourself why they funded him.

Democrats are yelling for regulations as the “solution” to the problems caused by the free market.  But before you fall for that load of malarkey, just realize that Fannie Mae and Freddie Mac were Government Sponsored Enterprises (GSEs) – and fell under the direct oversight of the government.  The reason Democrats want to have so much authority over the economy is so they can benefit from all the cozy and profitable relationships that accrue from the finance world coming to politicians for special treatment favors.

Did Barney Frank’s regulatory oversight over Fannie Mae and Freddie Mac stop their collapse?  Hardly.  In 2003, when George Bush first tried to create regulations that may well have prevented the 2008 collapse, Barney Frank represented the overwhelming Democrat opposition when he said:

”These two entities — Fannie Mae and Freddie Mac — are not facing any kind of financial crisis,” said Representative Barney Frank of Massachusetts, the ranking Democrat on the Financial Services Committee. ”The more people exaggerate these problems, the more pressure there is on these companies, the less we will see in terms of affordable housing.”

And just before Fannie and Freddie – which controlled half of the nation’s total mortgages – collapsed, Barney Frank (who had direct authority over the GSEs as Chairman of the House Financial Services Committee) said:

REP. BARNEY FRANK, D-MASS.: “I think this is a case where Fannie and Freddie are fundamentally sound, that they are not in danger of going under. They’re not the best investments these days from the long-term standpoint going back. I think they are in good shape going forward.”

You can watch Democrats fiddling while Rome burned on Youtube:

The Democrats’ “regulations” amounted to the foxes being put in charge of keeping the chickens safe.

And we’re currently seeing an explosion of frankly quasi-fascist interrelated influence between the White House and giant Wall Street entities under the president who has been bought and sold by the same people who destroyed the economy.

If you want the truth today, you have to go out and seek it.  Because the media today is as dishonest and as much of a propaganda tool for Democrats as TASS and Pravda used to be for the Union of Soviet Socialist Republics.