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Politicians Have Filled the Pipeline with Pain for Middle America

November 13, 2009

The announcement of financial overhaul legislation in the U.S. Senate this week smacked of irony as its author, Senator Chris Dodd—the recipient of a sweetheart rate on his home mortgage—announced a sweeping 1,136 page piece of legislation to “protect consumers.”  It appears at this point that the protection consumers really need is from this nation’s politicians, who have too long lined their pockets with campaign contributions from big business and who have allowed financial institutions to fleece Middle America.

It wasn’t but a couple of years ago that big business and congress all but eliminated the ability of consumers to effectively discharge their debts in bankruptcy proceedings.  At the same time, banks and financial institutions were making loans to borrowers who clearly could not qualify.  Banks, financial institutions and credit card companies continued extending generous limits on credit cards and lines of credit to consumers.  Now be fair, much of the mortgage activity was driven by Democrats in Congress who believed that everyone had an inalienable right to own a home, evidently whether they could afford it or not.  And naturally, Republicans, who long ago sold their soul to big business, positioned their bank and financial institution contributors for all of the mortgage business.

Middle America knew and assumed the risk that what goes up would someday come down, perhaps crashing down, which it did.  But when it did and as many Americans lost and continue today to lose their jobs, bankruptcy was and is simply not an available option.  Our politicians and big business have virtually eliminated it as an effective option for many consumers.

Now, consumers that are interested in honestly reworking their mortgages cannot even get a return phone call from their lender, and if they do they are told they do not qualify for any sort of loan modification.  It’s really great to see all that stimulus money going to work for loan modifications . . .

So here we are—after encumbering themselves with mortgages they cannot afford, credit cards and credit lines they cannot pay down, financial institutions have the shameless audacity to raise consumers’ credit card interest rates up to 30%.  Clearly, consumers have to take a certain degree of responsibility for their own condition, but how did our elected members of Congress and the Senate allow big business to systematically repeal consumer protections at virtually every turn?

Middle America really needs to understand how and why our politicians have allowed financial institutions to raise credit card interest rates to a level that is clearly usury.  No consumer knowingly consents to a 30% interest rate, regardless of whether there’s a meaningless disclosure on the back of his or her monthly credit card statement in tiny type.  Nor do consumers knowingly consent to what has become an ordinary practice by banks and financial institutions of charging consumers $35 for overdraft protection or checks returned due to insufficient funds.  Sure, consumers can choose to bank elsewhere, but the practice of gouging consumers with fees has become so universal by financial institutions that consumers really have no meaningful choice.

Without bankruptcy as a viable option to many in Middle America, there is plenty of pain left in the pipeline for years to come as consumers will remain enslaved with unmanageable consumer debt.  With no end in sight, consumers will continue to labor under the heavy load of mortgages on devalued homes they cannot afford, credit card bills they cannot pay, and no available remedy in a bankruptcy court that can set them free to start over.  It appears that consumer protection is dead and caveat emptor is alive and well.

A. Muser

https://americanmuser.wordpress.com/

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2 Comments leave one →
  1. clarence swinney permalink
    November 16, 2009 8:56 AM

    EMPIRE DESTRUCTION

    1980 to 2007

    20 YEARs OF 3 CONSERVATIVE PRESIDENTS
    18 years Conservative Senate
    12 years Conservative House
    6 years Total conserative control

    Redistribution of Finances to top 20%.

    Folk! It is downhill slide for Middle Class.

    FACTS—

    1946–1% owned 30% of Total Wealth

    1980–20%

    thence cometh conservatism

    1989-36%

    80% Increase in 8 years of Reaganism

    2007–20% owned 93% of Total non home Financal Wealth

    80% owned equity in homes.

    Most major corporations are owned by WALL STREET RICH MEN CASINO

    Five Wall Street Banks own 75% of all Bank Deposits in America. 5.

    Think that is not POWER???

    In 8 years of Bush with 6 years of Total Control

    THEY(wall street Rich) created a Net New Jobs of 3000 per month.

    Why? That is NET.You take the new jobs created and subtract the ones sent to China, etc

    3000! Wow! Bush took over after Clinton had created 237,000 Net New Jobs per month.

    Clinton left Bush a spending of 1830 B Per Year.

    Bush doubled it by 100% to 3600 B.

    Bush inherited a 5500B Debt from Clinton. He took it to 11,500B

    20 years of 3 conservative presidents did this horrible thing.

    Took the Debt of less than 1000B after 200 years and added on 8000B.

    Much of that 8000B went to WALL STREET GAMBLERS.

    The people do not know what has happened to them.

    Right Wingers yell Rich Pay most of taxes.

    Income Taxes.Yes.They have most of the Income.

    Yet! Conservative transferred much of taxation from Rich to Middle Class. Reagan voiding Revenue Sharing a disaster for Middle Class
    where taxes were transferred from Rich Income taxes to Middle Class in State and Local Taxes. It was a Designed Act of taxtion transfer by Conservatives.

    Destruction of S&Ls was deliberate act of wealth transfer from 400 local investors to indvidual Rich on Wall Street.

    Key actor Michael Milkin became a Multiple Billionaire with income of 550 Million in one year from raiding S&L deposits (plus) for his Rich Corporate Raiders on Walll Street.

    Raiders like Perelman and Ichan became mulitple Billionaires.
    Sweat of Brow? Ho Ho.

    RAPE OF MIDDLE CLASS 1980-2007

    Same ideology gave us Great Depression now Great Recession.

    It is not a Depression due to:

    Democratic Social Safety Nets such as
    Social Security and Medicare

    Only the uninformed vote to send conservatives to Washington.

    Some type f Revolt wil take place in next decade.

    Democrats will continue to allow Conservatives with their huge right wing talk shows spreading lies to blame them.

    Democrats need a national Megaphone informing all the people as to what has been done and how they have been RAPED by a few million RICH on Wall STreet who have taken their Wealth.

    I ask one thing.

    PROVE ME WRONG.

    cswinney2@triad.rr.com
    author-Lifeaholic-Workaholic to Lifeaholic success
    author-unpublished
    All American Party-How Democrats created a great successful Middle Class and how Conservatives are determined to destroy it

    available for 4 speeches

    Lifeaholic–the Bible tells us what and Lifeaholic tells us how

    Mr President-highly praised speech for sales organizations–how salesmen are fuel that runs business engines

    Business Management Success Top Down
    35 years in building and turning around businesses

    All American Party—for Democrats stimulation
    Great for fund raisers a hootenanny night of FACTS–much humor.Watch Bush riding old Spendo on his Crawford Farm.

  2. clarence swinney permalink
    November 16, 2009 9:01 AM

    Remember the Good 8?

    237,000 Net New Jobs per month
    Help wanted signs everywhere
    83 cent gas.
    Peace on Earth
    A Professional Leader.

    How can anyone who is half-intelligent claim this record is Inept?
    PRAISE CLINTON–WITH PLEASURE
    GDP–rose from 6300 to11,600
    NATIONAL INCOME-5,000 to 8,000 Billion–
    JOBS CREATED—237,00 per month to replace Jimmy Carter record of 218,000.
    AVERAGE WEEKLY EARNINGS–$360 to $478
    AVERAGE WEEKLY HOURS WORKED–never hit 35.0–hit that mark 4 times in 80’s
    UNEMPLOYMENT–from 7.2% down down down to as low as 3.9%
    MINIMUM WAGE–$4.25 to $5.15
    MINORITIES–did exceedingly well
    HOME OWNERSHIP–hit all time high (no big deal most can say this-except Reagan)
    DEFICIT–290 Billion to whoopee a SURPLUS
    DEBT—-+28%—300% increase over prior 12 years by Conservatives.
    FEDERAL SPENDING–+28%—+80% under Reagan- who is da true conservative?
    DOW JONES AVERAGE—3,500 to 11,720 top in 2000. All it’s history to get to 3500 and Clinton zooms it
    NASDAQ–700 to 5,000 top in 2000.—All of it’s history to get to 700 and Clinton zooms it
    VALUES INDEXES– almost all bad went down–good went up in zoom zoom zoom
    FOREIGN AFFAIRS–Peace on Earth good will toward each other—Mark of a true Christian–what has Bush done to Peace on Earth?
    POPULARITY—highest poll ratings in history during peacetime in AFRICA, ASIA AND EUROPE . Even 98.5% in Moscow–left office with Highest Gallup rating since it was started in 1920’s.
    STAND UP FOR JUSTICE–evil conservatives spent $110,000,000 on hearings and investigations and caught one very evil man who took a few plane rides to events.
    BOW YOUR HEADS—“Thank you God for sending us a man of Bill Clinton’s character, intelligence, knowledge of governance, ability to face up to crises without whimpering and a great leader of the world. Amen”.
    THANK YOU GOD FOR THE GOOD TIMES THE CLINTON YEARS.
    clarence swinney-political historian-Lifeaholics of America- burlington nc
    cswinney2@triad.rr.com

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