Trump pushing price controls now w/cap for credit cards

I hate regulations. They're stifling our economy. Costing us jobs. Helping China.

 

Wrong, China is now stronger than they've ever been because of tariffs. They protect their products and force foreign companies to give them their technology just to do business in their country.

 

I see your point, and have adjusted my thinking. Regulations aren't all bad; in fact some are quite helpful.

Also - these aren't the droids you're looking for.

 

Lol... creative... Not bad, actually.

 

Live within your means.

 

Trump‘s last idea about how Mexico would pay for the wall was a stroke of genius – tollbooths.

 

Yes, “price controls” are a type of regulation. It’s basically the most heavy handed type of regulation a govt could impose. Often a thing you see in failed states with runaway inflation, the govt imposes “price controls” on unaffordable goods. The only possible result of that is massive product shortages when producers leave the market. Then when producers leave a free market, the govt will coerce them to produce at the lower price or seize that production. This is your lesson today in Communism 101.

The obvious issue here isn’t just the “price control”, it’s that the 10% is so preposterously low it’s obviously just going to restrict credit. Banks are in the business of making money off net interest margin. They aren’t going to give credit to people @10% when the cost of doing so is above 10%. It’s that simple. The current prime rate is 7.75%, it should be pretty obvious there isn’t much room between prime borrowers and this cap. The only “govt price control” which comes to mind and most people accept here in the U.S. is the minimum wage, which at the federal level is still set at a measly $7.25. Setting a price cap at 10% for credit would be akin to the feds zooming past a $15 federal minimum wage and going straight to $25. I think most people would see a 27+% loan/credit rate as foolish or even borderline predatory, but 10% is going too far the other way if we are talking about a hard cap.

 

Mexico might be willing to pay for it now to keep Americans out

 

"We cannot continue to allow big banks to make record profits by ripping off Americans by charging them 25 to 30% interest rates. That is usury," he wrote.


lol

yep, that is why JP Morgan and Amex are both leading the maket charge since the election..lol

 

Still. . . . I'd love it if he actually did it. Let's all shed a tear for the predatory credit card companies.

That said, he isn't going to do it.