Irvine Wanna Be_IHB
New member
Just read this article in NYT and I need to rant.
http://www.nytimes.com/2009/05/19/business/19credit.html?_r=2&hp;
So, first, those of us who have been fiscally responsible and have been waiting for prices to come down to reality to buy a home have to bailout those who were irresponsible. Now, we are being punished b/c we pay our credit card bills on time.
This quote from the article is particularly infuiriating as the ABA admits that we will be subsidizing the irresponsible.
?It will be a different business,? said Edward L. Yingling, the chief executive of the American Bankers Association, which has been lobbying Congress for more lenient legislation on behalf of the nation?s biggest banks. ?Those that manage their credit well will in some degree subsidize those that have credit problems.?
And the argument for doing so is even more ridiculous.
?There will be one-size-fits-all pricing, and as a result, you?ll see the industry will be more egalitarian in terms of its revenue base,? said David Robertson, publisher of the Nilson Report, which tracks the credit card business.
People who routinely pay off their credit card balances have been enjoying the equivalent of a free ride, he said, because many have not had to pay an annual fee even as they collect points for air travel and other perks.
?Despite all the terrible things that have been said, you?re making out like a bandit,? he said. ?That?s a third of credit card customers, 50 million people who have gotten a great deal.?
Making out like a "bandit". You got to be kidding me! The only bandits I see are the banks. These banks seem to forget that each time we pull out our credit card they get 1-3% on the amount purchased from the seller. So, we are doing them a favor by using their credit cards.
What are the lessons learned here?
1) no need to be fiscally responsible b/c those who are will take care of you in the end
2) cancel all credit cards and use the old checkbook and debit card
http://www.nytimes.com/2009/05/19/business/19credit.html?_r=2&hp;
So, first, those of us who have been fiscally responsible and have been waiting for prices to come down to reality to buy a home have to bailout those who were irresponsible. Now, we are being punished b/c we pay our credit card bills on time.
This quote from the article is particularly infuiriating as the ABA admits that we will be subsidizing the irresponsible.
?It will be a different business,? said Edward L. Yingling, the chief executive of the American Bankers Association, which has been lobbying Congress for more lenient legislation on behalf of the nation?s biggest banks. ?Those that manage their credit well will in some degree subsidize those that have credit problems.?
And the argument for doing so is even more ridiculous.
?There will be one-size-fits-all pricing, and as a result, you?ll see the industry will be more egalitarian in terms of its revenue base,? said David Robertson, publisher of the Nilson Report, which tracks the credit card business.
People who routinely pay off their credit card balances have been enjoying the equivalent of a free ride, he said, because many have not had to pay an annual fee even as they collect points for air travel and other perks.
?Despite all the terrible things that have been said, you?re making out like a bandit,? he said. ?That?s a third of credit card customers, 50 million people who have gotten a great deal.?
Making out like a "bandit". You got to be kidding me! The only bandits I see are the banks. These banks seem to forget that each time we pull out our credit card they get 1-3% on the amount purchased from the seller. So, we are doing them a favor by using their credit cards.
What are the lessons learned here?
1) no need to be fiscally responsible b/c those who are will take care of you in the end
2) cancel all credit cards and use the old checkbook and debit card
