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The banks never did anything to you or anyone else. They lent money. In fact, they were forced to lend money to people that really shouldn't have gotten loans in the first place, or else they'd get in trouble by the government. The government is the one that got us into this mess.
I don't buy it. Banks were not forced by anyone to lend money. They were taking advantage of the market. Wall street was gobbling up every mortgage they could get their hands on. This was all due to the deregulation. Without a market, the crisis would not have been as bad as it was. Also, without deregulation, the economy would have not had boomed like it did. Double edged sword...
The government is begging banks to loan money and they still can't make them do it.
My wife and I pay cash/debit card for everything. I carry no debt of any kind. I own a house and two cars. I use a Discover card for gas and pay it off every month.
Recently we opened an account at a Credit Union. I applied for a credit card and both my wife and I were turned down. There was no legitimate reason given, just some pathetic rationalizations about "revolving charge" use and my credit being checked twice over the past few years.
I immediately complained to the Credit Union about the card company they have contracted with. The people at the Credit Union are quite sympathetic but the issue isn't resolved as yet.
This struck me as the card companies only wanting people they can screw over and over, all others they're eager to kick to the curb, even if your credit is good.
The banks never did anything to you or anyone else. They lent money. In fact, they were forced to lend money to people that really shouldn't have gotten loans in the first place, or else they'd get in trouble by the government. The government is the one that got us into this mess.
If people weren't irresponsible, we wouldn't be where we're at. But NO, everyone wants something NOW. They can't wait until they have enough money to get that new car/house/flat screen. It's not about banks. It's about personal responsibility.
But there are some that just need someone to blame.
Cash is ALWAYS the way you should go. Don't buy things until you can afford them and you won't have a problem.
Couldn't the same be said for the banks?
They acted pretty irresponsibly as well. Right now the government can't force them to make loans, why didn't the Banks use this rational when they were handing out loans to people when they knew the people probably couldn't pay back the loans?
Couldn't the same be said for the banks?
They acted pretty irresponsibly as well. Right now the government can't force them to make loans, why didn't the Banks use this rational when they were handing out loans to people when they knew the people probably couldn't pay back the loans?
MOST of the residential loans WERE NOT DONE BY BANKS.
Cash is a great option for those with trouble managing their budget. I advise everyone keeping at least one account active and current, as lack of credit usage is detrimental to your score also. Charge a bill or two such as cable and phone and pay them off each month.
I don't buy it. Banks were not forced by anyone to lend money. They were taking advantage of the market. Wall street was gobbling up every mortgage they could get their hands on. This was all due to the deregulation. Without a market, the crisis would not have been as bad as it was. Also, without deregulation, the economy would have not had boomed like it did. Double edged sword...
The government is begging banks to loan money and they still can't make them do it.
AAAAaaaactualy, they were. The Community Reinvestment Act "persuaded" banks to lend to folks who weren't really credit worthy. Did some banks get greedy? Probably. But their hand was forced because the government wanted to be a savior to the poor and make more money available to them, not taking into account that they were poor for a reason, and may not be the best stewards of money.
Now the government is trying to be the savior again, and punishing the banks, for things they made them do. Guess how that'll work out! Probably much the same.
Should they have been bailed out? Nope. But they're not the evil corporations that some are touting.
Bottom line....PERSONAL RESPONSIBILITY!!!
Yeah, I know..."but then who will we blame our failures on? Surely not ourselves!"
AAAAaaaactualy, they were. The Community Reinvestment Act "persuaded" banks to lend to folks who weren't really credit worthy. Did some banks get greedy? Probably. But their hand was forced because the government wanted to be a savior to the poor and make more money available to them, not taking into account that they were poor for a reason, and may not be the best stewards of money.
Now the government is trying to be the savior again, and punishing the banks, for things they made them do. Guess how that'll work out! Probably much the same.
Should they have been bailed out? Nope. But they're not the evil corporations that some are touting.
Bottom line....PERSONAL RESPONSIBILITY!!!
Yeah, I know..."but then who will we blame our failures on? Surely not ourselves!"
And the beat goes on.
None of this would have been possible without a market. So the Financial Services Modernization Act of 1999 is the direct culprit that gave banks a market for their borderline fraudulent mortgages. The approval process was in fact fraudulent. But BOTH parties were guilty and greedy. Both the lender and the consumer are guilty. I agree with you about a lack of personal responsibility. It was like sharks in a feeding frenzy.
The bottom line is that there's a bigger picture. Bigger than the consumer, lenders, and Barney Frank. It was the market.
No. Using my credit card = free loan for 30 days. Then I pay it off, and I don't have to worry about lugging cash around, losing my check book, someone getting a debit card pin number...and I pile up cash back points.
My bank doesn't charge me a cent for anything.
This is us, too. The other reason I prefer to use a credit card for most purchases is that it makes it easier to track where we're spending our money, and make adjustments as necessary. Cash just "disappears" into the ether with no accounting for where it went.
Quote:
Originally Posted by ozzie679
I think what thecoalman is saying is that retailers get charged x% every time you use your debit card. It's called a "discount". The more benefits the cardholder gets (cash back, miles, etc.) the more the retailer gets charged. That charge is then recouped through higher prices at retail.
Remember to always ask for cash discounts when you are making a larger purchase!!! I own a retail store and you will usually get the discount. That's another way to save yourself some money. Lots of retailers will throw in the sales tax or take off the discount (fee) the bank is charging for the acceptance of your card. When doing this don't negotiate a cash deal and then whip out the checkbook. Use greenbacks!
Prices would be considerably lower if we were a cash society.
I suspect that many merchants such as yourself would be slightly less willing to offer discounts for cash purchases if every customer was asking for them. My memory of Merchant Fees when I had my own business and was accepting credit cards is that you're charged monthly fees in addition to transaction fees, so unless you want to stop accepting credit cards altogether, you'd be losing money if every customer stopped using their cards and you lowered your prices to reflect the transaction fee savings. I'm also not convinced that merchants would lower their prices just because their costs went down. I rather think they'd enjoy the higher profit margin instead.
However, that's no reason not to ask for discounts, since many merchants are happy to give them, even if you're paying by credit card. I ask for discounts all the time, and get them most times, believe it or not.
The government is begging banks to loan money and they still can't make them do it.
And that is why the government has come out with all these tax credits and "cash for xxx" programs to bypass the banks to get consumers spending and borrowing.
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