Wednesday, June 11, 2008

The fun is just beginning

Obama says poor people are too stupid to have credit cards, and it's the banks' fault.
Illinois Sen. Obama, on a two-week tour focusing on problems in the U.S. economy, held a round-table discussion with three people who have seen their credit card debt skyrocket due to a relentless cycle of interest rate increases and fees.

"For too long, credit card companies have been using unfair and deceptive practices to trick Americans into signing agreements they can't afford," Obama said.

Americans have an obsession with credit cards, often using plastic in place of cash, and are encouraged by the credit card companies to use to them to buy not just big-ticket items but on everyday items like gasoline and groceries.

As a consequence, many people owe thousands of dollars in credit card debt and are only able to make the monthly minimum payment, leaving the balance in place for a long time.

Where I come from, that's called spending money you don't have. But these poor people are clearly too stupid, so we will punish those mean old banks.

End result? Less available credit for poor people.

Is there an issue in this country with people living above their means? Yes - but it's an issue of education, not access to credit.

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