So Thursday in New Mexico our Prez gave an uplifting speech about the need for credit card reform (see full remarks here). He talked about how the industry needed to be reigned in and how American consumers must bear some culpability for their role in the matter. Both points are true and laudable, however your boy was not impressed. That's right, I said NOT impressed by the latest Kabuki theatre from the new administration (I will write a full post on the other issues later that will discuss why I call it this).
While there are currently credit card reform bills winding their way through Congress addressing things like the following:
- making it more difficult for people under 21 to obtain credit cards
- clamping down on "excessive" fees (of course, who gets to determine what is excessive)
- presenting contract terms in plain language (this has been tried and failed before)
- establishing minimum time windows for billing
Regardless of what the traditional media might lead you to believe in the video above (and this is where they do the public a huge disservice), these changes will not make a dramatic difference for consumers who are already suffering under the crushing weight of debt. BTW, the average consumer that carries a balance has accumulated approximately $8,700 of outstanding credit card debt.
No, if the administration and Congress were sincere about making a difference in the lives of these Americans they would reinstate the ability of the states to enforce usury laws, which were basically rendered void by the Depository Institutions Deregulation & Monetary Act. Better yet, in conjunction with these "reform" bills, Congress could set a national cap on interest rates for loans and credit cards. But wait. What is that you say? There was a bill by Sen. Bernie Sanders that would have imposed an interest cap of 15%? Well, how did that bill do? Sad to say, it was shot down like some clay pigeons. However what is worse is that it could only muster the votes of 33 senators. Only one-third of the Senate felt compassion to stand up for the American people. Now you have to discount 40 percent of the Senate. Those being the Republicans. You already know how they get down. But it was especially disheartening to see how many of the Democrats, the so-called "People's Party" voted against this bill.
The blog Firedoglake has a great chart (click here) showing how the Democrats who voted "no" on the Sanders' bill voted on the two TARP bills (giving taxpayer money to large financial firms). It also shows how much in campaign contributions these senators have received from the Finance, Insurance, & Real Estate (FIRE) sector. Sometimes it is really just as simple as following the money.
In case you do not wish to follow all of the links the list of Democrats voting "no" is printed below. You may notice a striking resemblance to the names on this list and the members of the Conservadems group I wrote about previously.
Akaka (HI)
Baucus (MT)
Bayh (IN)
Bingaman (NM)
Byrd (D-WV)
Cantwell (D-WA)
Carper (D-DE)
Hagan (D-NC)
Johnson (D-SD)
Kaufman (D-DE)
Landrieu (D-LA)
Lieberman (D-CT)
Lincoln (D-AR)
Murray (D-WA)
Nelson (D-FL)
Nelson (D-NE)
Pryor (D-AR)
Shaheen (D-NH)
Specter (D-PA)
Stabenow (D-MI)
Tester (D-MT)
Warner (D-VA)