AOC and Bernie Team Up, Introduce New Plan That Would Hobble US Finance Industry

The socialist duo in Congress, Sen. Bernie Sanders and Democratic Rep. Alexandria Ocasio-Cortez, are teaming up to introduce legislation that would cripple a multi-billion dollar industry.
On Thursday, Sanders and Ocasio-Cortez announced a plan to limit credit card interest rates at 15 percent, significantly lower than the current average rate, according to Yahoo Finance.
“Despite the fact that banks can borrow money today at less than 2.5% from the Federal Reserve, the average credit card interest rate today for consumers is a record-breaking 17.71%,” Sanders and Ocasio-Cortez said in a statement.
The bill would also allow states to establish interest rates that are even lower, according to The Washington Post.
“There is no reason a person should pay more than 15% interest in the United States,” Ocasio-Cortez said on Twitter. “It’s a debt trap for working people + it has to end.”
But such legislation would cripple the United States finance industry, which brought in $113 billion in interest and fees from credit cards last year.

The socialists’ proposal would set interest rates far below the median interest rate, which was 21.36 percent last week, according to The Post.
Sanders and Ocasio-Cortez are right that banks borrow from the Federal Reserve at a significantly lower interest rate than consumers borrow from banks, but that’s because banks borrow millions of dollars and stimulate the economy.
Meanwhile, consumers are less reliable borrowers and use credit cards to make small purchases, which explains the disparity in interest rates. And the socialist lawmakers are actually hurting the consumers they are vowing to protect.
Consumers in unfortunate financial situations with bad credit would struggle to get approved for credit cards because lenders would be uncomfortable giving low interest rates to unreliable borrowers.
Of course, high interest rates aren’t good, but that doesn’t mean they need to be regulated down.
Credit cards aren’t necessary, and the people who accept high rates do so willingly. The process is a private, fair and consensual exchange between a lender and a borrower, and it ought to stay that way.
AOC and Bernie Team Up, Introduce New Plan That Would Hobble US Finance Industry AOC and Bernie Team Up, Introduce New Plan That Would Hobble US Finance Industry Reviewed by STATION GOSSIP on 11:50 Rating: 5

6 comments:

  1. I have a hard time feeling ANY pain for the poor finance industry.

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  2. Try the jew bankers always want MORE......

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  3. “Despite the fact that banks can borrow money today at less than 2.5%
    from the Federal Reserve, the average credit card interest rate today
    for consumers is a record-breaking 17.71%,” Sanders and Ocasio-Cortez
    said in a statement.

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  4. The commercial banks do not 'borrow' money they create money from nothing except an entry on their computers.
    The limit for usury of any loan should be not more than one percent for administration.
    Fed or CB rates relate to the charge on overdraft permitted to cover interbank transactions overnight.
    There is no need for any charges except admin and insurance to cover loan default.
    There used to be 'Credit Associations' or "Buying Associations" that gave certainty to the seller, discounts to the buyers and at the end of the year refund of excess to the members.
    Sellers agreed discounts for assurance of payment (5% - 10%) and centralised payment.
    The buyers used their cards at the sellers outlets which were in the agreements.
    Buyers got centralised billing, credit to the end-of-the-month and 1%-2% discount on billing.
    End of year the excess of income over costs was paid to the members, based on their participation in total purchases, sometimes as much as 5% of annual purchases.
    It was win - win and cost effectively nothing. However no one got rich and therefore the associations were discontinued.

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  5. Are there any credit cards available now with an interest rate of 15% or less? People could use those cards.
    No need for another government bureaucracy.

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  6. Awww ...poor credit card companies. My heart bleeds for these pirates .....not.

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