• Limit Max Credit Card Rate Allowed To Prime + 5%

    From Intelligent Party@Intelligent@savetheworldmsn.com to sac.politics,ca.general,alt.california,ca.politics,ny.politics,nyc.politics on Sun Oct 11 20:22:16 2020
    From Newsgroup: nyc.politics

    Prime + 5%
    = Federal Funds + 8% basically.

    And that should be the max credit card interest rate allowed, is an idea, unless
    anyone is against it.


    The Prime rate is presently 3.25%: https://institute.jpmorganchase.com/about/our-business/historical-prime-rate

    Prime is the rate charged to the most credit-worthy borrowers, on secured property.


    And the Federal Funds rate is presently 0%-.25%: https://tradingeconomics.com/united-states/interest-rate

    Federal Funds is the rate the Fed lends at, to Banks to meet their overnight reserve requirements.


    When the Federal Funds rate changes in the future, the max allowed credit card rate would change, but only for new purchases.

    Banks already repackage credit card balance and risk and sell them to other lenders, so they can get out of the fixed rate.


    The most subprime CCC Bonds presently pay about 11%, with a 50% default rate, which equals 5.5%, so this would be less than credit cards, which are unsecured.
    https://www.wsj.com/market-data/bonds/benchmarks


    Reduce Max Credit Card Rate To Prime + 5%


    Currently 3.25% + 5% = 8.25%

    Likewise Federal Funds + 8%
    Currently 0.25% + 8% = 8.25%
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  • From Intelligent Party@Intelligent@savetheworldmsn.com to sac.politics,ca.general,alt.california,ca.politics,ny.politics,nyc.politics on Wed Oct 14 15:04:47 2020
    From Newsgroup: nyc.politics

    On 10/11/2020 8:22 PM, Intelligent Party wrote:
    Prime + 5%
    = Federal Funds + 8% basically.

    And that should be the max credit card interest rate allowed, is an idea, unless
    anyone is against it.


    The Prime rate is presently 3.25%: https://institute.jpmorganchase.com/about/our-business/historical-prime-rate

    Prime is the rate charged to the most credit-worthy borrowers, on secured property.


    And the Federal Funds rate is presently 0%-.25%: https://tradingeconomics.com/united-states/interest-rate

    Federal Funds is the rate the Fed lends at, to Banks to meet their overnight reserve requirements.


    When the Federal Funds rate changes in the future, the max allowed credit card
    rate would change, but only for new purchases.

    Banks already repackage credit card balance and risk and sell them to other lenders, so they can get out of the fixed rate.


    The most subprime CCC Bonds presently pay about 11%, with a 50% default rate, which equals 5.5%, so this would be less than credit cards, which are unsecured.
    https://www.wsj.com/market-data/bonds/benchmarks


    Reduce Max Credit Card Rate To Prime + 5%


    Currently 3.25% + 5% = 8.25%

    Likewise Federal Funds + 8%
    Currently 0.25% + 8% = 8.25%

    Bump
    --- Synchronet 3.18a-Linux NewsLink 1.113