Saturday, December 29, 2007

Constitutional Amendment, Interest Rate Cap for Consumers

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Stopping interest rates and fees above 18% would do this country a world of good. Most businesses do not expect returns on investments above 10 to 12% per year. Why should banks be allowed to run wild ? It's because they have the money, and are financing 1/5th of the current presidential election. Here's a quote from MotherJones's John Ridgeway from last July.

"None of this means that Americans who've been planning to cut up their cards should put away the scissors and go shopping. If the bill ever makes it to a vote, it will face a nearly insurmountable obstacle: All told, in 2006, financial and credit card companies gave $7 million in campaign contributions, and banks $25 million, to candidates of both parties, according to the Center for Responsive Politics. Leading the pack, with $378,000, was Hillary Clinton."

Consumers need to rise up and free up that money so that businesses can borrow it and jump start the economy. My Republicorps friends all tell me that businesses need money to invest, and denying consumers loans at rates above 18% would surely make for a lot of capital for the businesses who want to make America thrive, no?

So, let's get a constitutional amendment going that caps all consumer lending at 18%, INCLUDING all fees and other assessments of any kind. The cost to consumers to borrow money shall not exceed 18%. Simple simple, and maybe the consumers can dig themselves out from the mountain of debt they now owe. Didn't Jesus drive the money lenders with high rates from the temple ? Now look at the mess we're in. John Edwards seems to be the only candidate addressing this issue.

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