"Maxed Out"
movie buffs, please do not read any further. I don't want to ruin the story line for you, thus I am writing the rest of this entry in white.
This is another interesting expose on corporate America, along the same line as "Super size me". The entire movie went on and on about how banks use predatory marketing to single out the financially vulnerable and eventually take all their money and forces fore-closure or bankruptcy on these poor citizens. That's it, that's basically the entire story line. There were experts, lobbyists, ex-bank employees, as well as the family of the victims being interviewed, and unanimously they all come to the conclusion that it's the bank's fault, as well as the government since they didn't do anything to regulate the market.
Excuse me for being an independent here, but the credit card scheme boils down to one very simple principle for me:
"If you borrow money, you will have to pay back, and with interest that's agreed upon by both parties when you initially borrowed the money. "
Isn't that just simple, concise, and age old true? I mean, borrowing money from an institution like a bank is not modern invention. It's a practice that's been in existence for as long as we've had the concept of bartering.
In the movie, there are many so called "victims". But when it comes down to it, no matter how much late fee or interest the greedy banks charged, the audience must see that there's the PRINCIPLE part not being paid back. Why? Because those people spent money that they don't have! They borrowed money to buy luxury items that they cannot afford, and ended up not being able to pay back the debt. HOW in the world is the government supposed to do anything about THAT?!
If you ask me, Yes, the banks are greedy, yes, the 20+% interest rate on the credit cards are high, which is exactly why you DON'T borrow at that interest rate for none-life-necessity things. Yes, the only items being exception outside of food and water is maybe take out a loan for a car and a house. But again, if you can't afford it, don't spend it. One can argue that someone can always ride a bike, buy a used car, rent for a while, get a roommate if they can't afford that new car and new house.
There's the blame on the government for lack of regulation. Anyone who's studied economics know that the free market is the most desirable (except monopoly cases) most of the time. It's boiled down to the individuals to be FINANCIALLY RESPONSIBLE for their situations. To declare bankruptcy because one cannot make ends meet is not someone else's fault! Stop blaming others, and start to realize the utter stupidity displayed in some of the victim cases. Yes, they are victims, to their own lack of financial literacy and stupidity and greed! (for spending borrowed money in the first place)
Bottom line is, I think American public should learn the lessons that many new immigrant families already know by heart when it comes to financial management: you don't spend what you don't have and cannot afford! PERIOD.
This is another interesting expose on corporate America, along the same line as "Super size me". The entire movie went on and on about how banks use predatory marketing to single out the financially vulnerable and eventually take all their money and forces fore-closure or bankruptcy on these poor citizens. That's it, that's basically the entire story line. There were experts, lobbyists, ex-bank employees, as well as the family of the victims being interviewed, and unanimously they all come to the conclusion that it's the bank's fault, as well as the government since they didn't do anything to regulate the market.
Excuse me for being an independent here, but the credit card scheme boils down to one very simple principle for me:
"If you borrow money, you will have to pay back, and with interest that's agreed upon by both parties when you initially borrowed the money. "
Isn't that just simple, concise, and age old true? I mean, borrowing money from an institution like a bank is not modern invention. It's a practice that's been in existence for as long as we've had the concept of bartering.
In the movie, there are many so called "victims". But when it comes down to it, no matter how much late fee or interest the greedy banks charged, the audience must see that there's the PRINCIPLE part not being paid back. Why? Because those people spent money that they don't have! They borrowed money to buy luxury items that they cannot afford, and ended up not being able to pay back the debt. HOW in the world is the government supposed to do anything about THAT?!
If you ask me, Yes, the banks are greedy, yes, the 20+% interest rate on the credit cards are high, which is exactly why you DON'T borrow at that interest rate for none-life-necessity things. Yes, the only items being exception outside of food and water is maybe take out a loan for a car and a house. But again, if you can't afford it, don't spend it. One can argue that someone can always ride a bike, buy a used car, rent for a while, get a roommate if they can't afford that new car and new house.
There's the blame on the government for lack of regulation. Anyone who's studied economics know that the free market is the most desirable (except monopoly cases) most of the time. It's boiled down to the individuals to be FINANCIALLY RESPONSIBLE for their situations. To declare bankruptcy because one cannot make ends meet is not someone else's fault! Stop blaming others, and start to realize the utter stupidity displayed in some of the victim cases. Yes, they are victims, to their own lack of financial literacy and stupidity and greed! (for spending borrowed money in the first place)
Bottom line is, I think American public should learn the lessons that many new immigrant families already know by heart when it comes to financial management: you don't spend what you don't have and cannot afford! PERIOD.
-- posted by Pooh Bear @
3/14/2007 02:37:00 PM
1 Comments:
I must say I'm in complete agreement with the notion of being fiscally responsible. I think that many citizens would be equally as outraged if the government started to heavily regulate lending practices in the banking industry. Those who borrow need to understand all the Ts and Cs of what they're signing up for, and realize the differences between a home mortgage loan and a credit card loan. When people learn I work at Visa, their favorite joke is "Could you do something about my balance?" While that is always amusing to me, the reality is the Visa is simply a transaction processor that facilitates electronic payments and provides clearing and settlement to those transactions on a daily basis. Member banks who own Visa (although that will soon change) are those who provide the lending and account services. Of course they do so to maximize profit, usually at the cost of those unsuspecting consumers who don't understand what they are getting into. I sincerely hope that Visa and its competitors do not get the associated bad PR from this movie as I think credit/debit cards are an extremely useful tool and are much more convenient that cash or checks.
Post a Comment
<< Home