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#11 | Posted by DarkVader at 2026-01-24 02:01 PM
It's one of his few good ideas.
It's not "his" idea and, like most "populist" ideas, it's a bad one:
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The interest rate cap has drawn bipartisan support from some lawmakers, including Sen. Elizabeth Warren, a Democrat from Massachusetts, and Sen. Josh Hawley, a Republican from Missouri. If enacted, the proposal could save consumers $100 billion per year in reduced interest payments...
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Financial institutions and insurance companies set the rates on their products according to risk involved - it's a part of 'risk mitigation' strategies - that's why credit ratings exist to begin with. Better credit rating usually affords better (lower) interest rates charged, and/or other benefits / incentives made available.
That's how financial markets work - "To each according to their credit rating."
Government trying to restrict rates or charges simply distort the market and usually result in less credit available ("debanking"?!), higher fees or private "loan sharking" and lower economic activity.
For example, to accommodate politicians, banks can issue a 10% credit card, but charge an annual fee, and/or limit them to a certain segment of customers (presumably, with higher credits scores) in which case there will be no real "savings" - some banks, have already done that:
www.cbsnews.com - Bank of America may introduce credit card with 10% APR - 2026-01-23
|------- Bank of America is weighing whether to launch a new credit card that would comply with President Trump's push to temporarily cap card interest rates at 10%...
Bank of America already offers credit cards with initial average percentage rates below 10%. For example, its no-frills BankAmericard offers consumers a 0% introductory APR for 18 months. Once that period ends, however, the APR rises to between 14.5% and 24%, depending on the cardholder's credit score. ...
The banking industry has criticized Mr. Trump's proposed cap, saying it could hurt consumers by reducing their access to credit and steering them toward riskier lending products. Reduced consumer spending would cut into economic growth...
Bilt, a financial technology company that offers credit card rewards for customers who pay their rent and mortgage payments on time...
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IOW, mostly you will get a 10% CC if you don't ever pay interest on your CC... pretty much what you have now.
There are always exceptions, but the rule of thumb is: if you have to look at the interest rate on your CC, you can't afford it. CCs are for convenience and streamlining of expenses only.
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You can do something. The Senate has not yet approved their funding.
Call your Senators right now and tell them not to support any funding of DHS until Grusty Gnome is held accountable for her lies to American people and the crimes of her Secret Police.
Tell your Senators that we do not support any Secret Police and a Government that lies to its people and murders them in cold blood in the streets of America.
Call them and keep calling.