It's the cornerstone of the Bush economy
response to James Scurlock and Josh Cochran's post House of Credit Cards
Where the poor and middle class do "thier part" overpaying in interest rates and fees for the necessities of life like keeping the family car running.
Like this article? Tell the world It's Good!
not yet rated
No....it's not.
George W. Bush did not invent the banking system. He did not invent interest rates. The system in which loans to higher risk borrowers pay higher interest rates has been around for thousands (yes, thousands) of years. Banks and high interest loans are not a Bush administration phenomenon.
If high-risk borrowers paid low interest rates, then banks would be more likely to go out of business, because they would lose money on too many loans. Interest rates are calculated to protect lenders from risk. The poor and middle class are not "overpaying." You are implicitly suggesting that it is the banks responsibility to fund a financially overextended lifestyle for borrowers with low income and bad credit histories. Not only is it not their responsibility, it would be irresponsible if they did so. And as the author said, they pay the price if they do (and overextended banks certainly are paying for it now).
Posted on August 12, 2007 — by munkybusiness
0 comments