Big Banks Charge Ridiculous Loan Rates – Big Gov Isn’t Looking to Murder Them
Big Government is bad business for the Little Guy. Because the Little Guy can’t afford the exorbitant expenses Big Government imposes upon him.
Big Business loves Big Government – or certainly doesn’t mind it quite so much. Big Business bribes Big Government – and in exchange gets laws and regulatory policies catered to them. And Big Business can afford to pay the exorbitant expenses Big Government imposes upon them – while the costs murder their Little Guy competitors.
And so it is in banking. In 2010 DC inflicted us with the massive government expansion that was the idiotic Dodd-Frank law:
“One purpose of the Dodd-Frank Act is to eliminate Too-Big-to-Fail (TBTF) banks.”
How’d that go? How it always goes when Big Government gets bigger. Big Business gets bigger – and the Little Guy gets crushed.
Less than two years after Dodd-Frank became stupid law, the Big Banks were already 30% bigger. And the Little Guy?
This wasn’t an accident. This was an act of Big Government cronyism.
Big Banks keep getting bigger – because Big Government keeps murdering their competitors.
“Congress is looking to price cap what are called ‘payday loans.’ Here is exceedingly awful Ohio Democrat Senator Sherrod Brown patting himself on the back for co-sponsoring this idiocy.
“‘Payday loans’ are so named – because poor people take the loans when they run out of cash prior to payday. Like, say, when their car breaks down – and they need to get the car running…to get to work to get paid on payday.
“Rich people don’t need payday loans – because they have the money to cover things like that.
“Poor people used to get these loans from small, community banks. But DC took care of that (with Dodd-Frank)….
“The economy abhors a vacuum. DC having murdered one lender-to-poor-people – another arose in its place. Born was the payday lender.
“DC won’t let that stand either. They want to price cap payday loans – but we know what that really means.
“As basic economics and 10,000 years of human history tell us – price caps murder the item capped.”
Big Government is looking to murder the Little Guy lenders to the Little Guy – so Big Banks will get the business. How very Dodd-Frank of them.
Except Big Bank interest rates are hardly better. In fact – as I know from personal experience – they’re exceedingly awful.
The Big Bank equivalent of payday loans – are credit cards. You make purchases for which you don’t have the cash at hand – and (hopefully) pay them off before the interest rates kick in.
I have three cards – from three different Big Banks. On each of which I have charged something – and paid it off – each and every month for more than a decade.
One card gives me 2% cash back on all my purchases. I run just about every purchase I can through that card – including for a while my mortgage payment. That represents at least a couple thousand dollars a month – all paid back, on time, every month. For more than a decade.
I have a great credit score – 820 at last check. I have a non-poverty level income – further bolstering my ability to borrow on…and pay back…my charges.
And my great-credit-score, decent-income, paid-back-for-a-decade-plus credit card interest rates for my three cards? 20.24%, 21.49% and 24.40%.
How very payday lender of the Big Banks. Yet somehow – SHOCKER – Big Government isn’t doing anything at all about the Big Banks and their “predatory” lending practices.
Meanwhile, Big Banks won’t even give credit cards to the payday-loan-borrowing Little Guy – because the Little Guy doesn’t have a great credit score and/or decent income.
And if the Little Guy can get a credit card – the interest rates are INSANELY high. WAY higher than even mine. And as high – or higher – than the payday loan rates.
Yet somehow – SHOCKER – Big Government isn’t doing anything at all about the Big Banks and their “predatory” lending practices.
Meanwhile, Big Government is looking to murder payday lenders.
Which will drive the Little Guy into the equally-high-or-higher-interest-loan tentacles of the Big Banks.
Because – ain’t DC cronyism great?