politics

"Credit card companies hate him for this one trick!"

Effectively what this would mean is that 90% of the country will lose access to credit cards lol

"Credit card companies hate him for this one trick!"

Effectively what this would mean is that 90% of the country will lose access to credit cards lol

https://x.com/BehizyTweets/status/1836565850687406158

Coinbase employee (Investigatooor), personal account. Onchain is the future.

Where are all the guys crying about Harris caps on price gouging now? 🤔

Political activist. Founder of mydemocracy.app and /advocacy. Host of the /politics channel. RCs may or may not = endorsements.

The interest rates on these cards are so high because they're technically mini uncollateralized loans. If you don't pay the cc company back they don't usually have an asset they can reclaim (like in the case of a mortgage). Rates then become a function of risk where the cc companies have to calculate what rate they charge where the $ they make from interest payments outweighs the amount of $ they lose from defaults/fraud/theft.

If you were to cap rates at 10%, cc companies would have to eliminate any customer who presented even a slight risk of defaulting, they'd only be able to supply credit to the most qualified of users and might even need them to put up some kind of collateral. You'd probably also see a major decrease in credit limits.

I'm actually supportive of this policy. I think there should be a limit on the amount of interest credit card and payday loan companies can charge. 

Why do you believe that 90% of the country would lose access to credit cards?

I don’t hate it in an idealistic world. But I also don’t hate full communism in an idealistic world.
🤷🏻‍♂️

if it were an easy fix it would have been done already

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I'm not necessarily oppose in principle to some kind of cap or regulation around it. I mostly just find the 10% cap to be 1) arbitrary, 2) contrary to free market/deregulation ethos of the US right, and 3) likely to have drastic impacts that will make many of his supporters quite upset.

I kinda feel short term pain for long term gain here though?