The sad and sorry events that conglomerate to make up The Great Recession are not remote or removed from us. They are not hypothetical or academic. They are happening to me, to you, to people we love and know and meet. This is--ultimate irony-- an illiberal and unprejudiced set of setbacks; open to all comers, the just and the unjust alike. Doesn't that make it just so impossible to grasp the rationale behind policies and pronouncements from the reactionary right?! I'm almost speechless, but only almost. A couple of personal stories and a well-earned award--just got to get these off my chest.
The first thing a young man of my distant acquaintance found in his brand new mailbox during his first orientation week at college in late '90's was an application for a credit card--Holy Magic Crap, free money! The Grail. College definitely had the shit beat out of high school. He hid the application away in a drawer under his new Abercrombie boxer shorts for a few days, pondering whether to ask his parents about it or even whether it was safe to handle. He took it out once and filled in the information blanks, then put it away. He took it out again and signed on the bottom line; the card company only asked for his signature--could that be right?--and hid it away again. There was the fine print, the interest rate, but those numbers had no meaning yet. Finally, he queried some of the less obviously insane freshmen on his dorm hall, and heard, "Dude, you haven't sent yours in yet?! Mine's already come. My roommate got an application at a booth at orientation. Check it out!"
And he said unto them that stood by, Take away from him the pound, and give it unto him that hath the ten pounds.
-Luke 19:24-
Once upon a time there were people who would lend you money at high rates of interest. We called them loan sharks and we put them in jail if we could catch them. We had usury laws to protect the public from being forced into ruinous transactions. We were just inches away from Marxism.
Then came the deregulators who told us that it was toxic government interference and was depriving us of our "freedoms" to apply the same laws to that class of supercitizens known as corporations and so now we are free to borrow at rates Don Corleone wished he could have charged. Sure, some states jumped in and capped payday loans and the government "protected" the military from being charged more than 36%, but of course that's an outrageous assault on our "freedoms" and sure enough, the lobbyists came out of the woodwork and bought themselves a House subcommittee which went to work legitimizing loans with a 391% APR. For many in the payday loan business, that's not enough.
H.R. 1214 introduced earlier this year by Congressman Rep. Luis "dances with jackals" Gutiérrez [D-IL4] is still in committee. Yes, Luis is a Democrat, let's give credit where it's due and Luis, who rose from poor Hispanic roots in Chicago promising to help others like him is now the champion of legalized juice loans and the big banks that screw the little guy in a big way.
The congressman got into trouble last year for getting a $200,000.00 loan from a contractor for whom he had intervened with the zoning board, but I'm sure he isn't paying 391%. A competing bill from Congressman Joe Baca would prevent States from capping rates at all and would allow much larger add-on fees and charges, but the really great feature would allow you to roll over the loan indefinitely, racking up that 400% or so until you're forced to commit suicide.
Meanwhile, for the rest of us who aren't desperate enough with trying to pay medical bills and mortgages we can't afford, the Credit companies are out to protect our freedom too. Faced with having to warn us they're tightening the screws in the near future, they're tightening them now without warning. I got a letter yesterday from my friendly MasterCard folk ( I won't mention the name but it rhymes with Citibank) informing me that since I've been such a good customer for 25 years and always paid the full balance on time, they would raise my interest rates to over 20%. Well to tell the truth there was a time or two when I got the un -postmarked bill on or after the due date although the last two times they tried that I'd switched to e-bills and had documentary proof that they sent the bill too late to be paid on time. They refunded the charges which would have amounted to nearly 100%, but I never got an apology for their attempt at petty larceny and I don't expect a letter of appreciation for my part ( and yours) in bailing them out when they choked on their own greed.
Yes, I know, when the Republicans justify their crimes by insisting the Democrats aren't pure at heart either, they don't avoid the guilt, but they're not always lying.
