Baseball91's Weblog

January 28, 2010

The State of the Union

When credit card companies gave you zero percent rates….giving away product, charging nothing. Now the government is doing the same. For banks,getting zero percent rates so they could keep operating. As the banks were not extending anyone credit.

By Congressional Act, the Federal Reserve was founded in 1913 specifically to combat financial panics, including runs on banks. Since the Fed, when the economy was overheated during the subprime mortgage boom, did not regulate interest rates to dampen the ardor of member banks for mortgages as it could have, Ron Paul was calling for greater Congressional control of this private entity.

When would the banks get hit by the government by the over the limit fees, like those banks charged their customers on their credit cards?

The system….when the affluent paid the least, and the poor paid the most. For free checking accounts. Unless you had less than $800 in your account, and the bank charged you a monthly fee of $12. At banks, or at your dental clinic, it was all the same. The poor were charged the most. Unless you paid Delta Dental who got a special discount, and the rest were left to pick up the slack. At the banks, U S Bank in Minneapolis, the poor were paying for the rich.

And there were no more free toasters. Nor free checking. Ending TCF’s long-time “totally free” checking account, the regional bank TCF Financial Corporation plans to begin charging maintenance fees to customers with checking accounts, CEO Bill Cooper said in a conference call with investors on Thursday. The rationale was prompted by new federal regulations which likely will reduce revenue from overdraft fees.

Milton Friedman’s fundamental flaw was his fixation on the business cycle as expressed by the stock market, rather than looking at the whole economy with its wide range of meta-finance concerns such as agricultural economics, labor economics, population economics, and the economics of war, pollution, and development. The current administration did not seem to recognize the ongoing fundamental flaw. There was little real difference between the Republican and the Democratic leadership, under the influence of the lobbyists who paid both parties.

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1 Comment »

  1. Comment by baseball91 — May 24, 2015 @ 11:18 PM | Reply


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