
The Fed Should Buy Down Consumer Credit Card Rates - Fast - Anon84
http://blogmaverick.com/2008/10/24/the-fed-should-buy-down-consumer-credit-card-rates-fast/
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mynameishere
_In exchange for Bailout Funding, the TARP should require banks that issue
credit cards, whether in their names or others, to limit interest rates and
fees._

No clue. None. The guy is obviously a competent technologist and basketball
fan, but _manipulating prices causes shortages, surpluses, black markets, and
suffering_.

If you force a bank to charge prime rates to Bill and Mary Ne'er-do-well, then
the banks will simply _drop the credit lines_. Result: The underground market
takes over, and Bill and Mary get their loans from (at best) a grey market
"paycheck advance" outfit, pawnshops, or (eventually) the mob.

~~~
krschultz
His economic "theories" are half baked at best. Seriously, the amount of
unintended consequences of his proposals are absurd.

This must be the 4th article from him on Hacker News on economics, none made
sense. STOP UPMODDING THEM. This is Hacker News not Things That Random Hackers
Might Have Said That May Or May Not Be In Any Way Intelligent.

~~~
davidw
Much as I find it interesting, I would rather avoid economics altogether, as
it often ends up being a clash between people who fervently believe in
"Austrian" economics, and people who are more inclined towards mainstream
economics of various stripes. This almost inevitably leads to lots of heat and
little light.

------
hs
when there's crisis, some people can use it for manipulation

For example:

Yesterday, NCC bank got acquired stock-for-stock 0.0392 ratio (2.23 / 56.89)
by PNC bank.

NCC did not get TARP money. PNC got money from treasury in return for
preferred stocks

NCC largest shareholder (Corsair) gets 4+ bln in 'non-stock dividend' + 3 bln
shares valued at $2.35 (Corsair invested 7 bln dollar during the last 6
months)

NCC executives get 300+ mill usd in compensation and 'golden parachute' (they
will be in PNC+NCC board)

the employees of NCC (non executives) got laid off (4000 already) and will be
more

The shareholders got shafted, thursday close was $2.77, the deal is priced at
$2.23

There's a class action lawsuit in progress against NCC -- NCC CEO said NCC is
"well capitalized" and various misleading things that can be considered fraud

In effect, FDIC infused TARP money to PNC to buy NCC, in return for the stakes
(they say _every_ bank qualifies -- that's not right)

See, in crisis some people get more power to screw everyone ... so don't worry
about credit card crisis not happening -- it will ... some people want it to
happen

