Monday, April 29, 2024
Miles from the Mainstream
D. R. ZUKERMAN, proprietor
Thank You CBS Evening News

DECEMBER 4, 2005 --

A Federalist 57 thank you from LPR to Bob Schieffer and correspondent Trish Regan for taking notice, last week, of the pressure applied by credit card companies on cardholders.

The report from Ms. Regan noted that interest rates are now generally 14% on outstanding balances and may well go
to 20% next year.

Ms. Regan also reported that half of credit card profits come from late charges and penalties.

This writer received his latest statement from Chase Dercember 2. Mr. Schieffer and Ms. Regan should know that the current interest rate on this account is
27.99% profitable.

Ms. Regan's report, suggested that the obscene (my term, not hers) rates charged cardholders are about as good for the economy as obscene oil prices -- that is to say: the credit card companies are siphoning the purchasing power of ordinary consumers.

LPR imagines the result will be an economic oasis for Chase and the credit card industry -- and an economic desert surrounding Oasis 27.99.

Chase has long since recovered any loss from this cardholder with interest rates that get the principal reduced by some $17 on payment of $300.

Is this, now, the formula for econmic well being in America -- pay some $3600 to the bank for 12 months and see the principal reduced by some $200?

Well being for the bank officials, of course -- but maybe not for the general welfare.

He that profiteth from onerous interests may create a whirlwind of economic chaos.

CBS News would be giving a Christmas present to the American economy if Bob Schieffer were to ask the Chase president to explain interest rates of 27.99% demanded of persons who have cleared up past lateness -- and if Mr. Schieffer were to ask President Bush his view of 27.99% credit cared interest rates.

If there ever was a time for the media and
administration to take note of the warning in Federalist 57 about people demanding the "ambitious sacrifice of the many to the aggrandizement of the few," the brutal greed of credit card companies, this
holiday season, LPR submits, is just such a time.

Scrooge changed and was redeemed one Dickensian Christmas. Credit card banks like Chase are, LPR fears, not about to catch the spirit of humanity, as Ebenezer Scrooge did.

How can the aggrandizement of the many for the benefit of the few promote our
economic well-bring?

Yes, LPR believes that double-digit interest rates approaching 30% are a present-day form of aggrandizement to benefit the few.

How long will it take our elected officials and the rest of the media to notice credit card gouging -- or must the economy going into a tailspin first?

Does the Saudi King listen to Rush Limbaugh?

Yahoo carried a headline
November 19 stating that the
King thinks oil importing countries ought to cut taxes.