LETTER TO THE EDITOR:

Regulation should accompany bailout

Owen Teeters, Las Vegas

Sunday, Jan. 4, 2009 | 2:02 a.m.

The Las Vegas Sun’s Thursday editorial “Helping consumers” was right on target. If only our new administration and Congress would read it and act accordingly.

It is apparent the credit card companies are following cannibalistic practices and apparently Treasury is continuing to help them as it did with the bailouts of Wall Street and the banks. These practices have contributed greatly to our economic meltdown already. The only effect of these bailouts is to further burden the individual taxpayer, who really is the ultimate payer of all the income taxes.

The so-called “credit scores” are faulty and are relied on by credit card companies (read: banks) to continue this rape of the consumer. Is it time for the federal reserve to create a national credit card agency with 6 percent rates rather than depending on the banks to restart consumer spending? The federal government could have a lien on income tax refunds and other government payments.

If we depend on the banks to restart consumer lending, it will be a long time coming and the consumer, being “burned” by the credit card companies (interest rates up to 29.9 percent, etc.), will not bite the next time around.

Maybe Sen. Harry Reid will read this and get something started to implement these new regulations now.

Discussion: 3 comments so far…

By annienonymouse

1/4/09 at 7:13 a.m.

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I agree that the credit scores are faulty. I have excellent credit, never been late on any loan or credit card since I established credit in 1974. That was back when you had to be 21 to start credit without a co-signer.

My score for 2008 is 702 down one point. The reasons given are the same as the prior year: 1. New credit credit card - (it's 4 yrs old); 2. Owe too much on one credit card -(I've never been late in the 15 yrs I've had this card); & 3. I don't have a mortgage loan - (duh, I can't afford one).
By RunningonEmpty

1/4/09 at 7:32 a.m.

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Of the money we have seen thrown around thus far let me ask you this,that 168 billion that our country borrowed to give away to us in the form of an "economic stimulus package" did it do a darn thing to create jobs or stimulate our economy?NO, nothing.And we borrowed the money from China.This past year the high cost of gas nearly destroyed our economy and society. More people lost jobs and homes as a direct result of that than any other factor in our history.Fannie and Freddie continue to get all the blame.Of all the homes I have seen lost in my area none were due to an adjustable mortgage. They were due the economy.Families went broke at the pump alone. Then added to that most saw record rate hikes at their utility companies.The high cost of fuel resulted in higher production and shipping costs that were passed on to the consumer, in most cases higher prices for smaller packaging. Consumers tightened their belts, cut back, went out to eat less or stopped totally. Drove around on tires that needed replacing longer, some even quit buying medicines they really need.Unfortunately cutting back and spending less results in even more layoffs.A real economical catch-22.And, as we are doing the happy dance around the lower prices at the pumps OPEC is planning to cut production to raise prices. They are even getting Russia in on the cutbacks. Oil is finite. We have used up the easy to get to reserves already. It will run out one day.We have so much available to us. Solar and Wind are free sources of energy. Of course to get the harnessing process set up is somewhat costly it is still free energy. It would cost the equivalent of 60 cents per gallon to charge and drive an electric car. The electricity to charge the car could be generated by solar or wind at least in part and in most cases totally. If all gasoline cars, trucks, and suv's instead had plug-in electric drive trains, the amount of electricity needed to replace gasoline is about equal to the estimated wind energy potential of the state of North Dakota. What a powerful resources we have neglected.Jeff Wilson has a profound new book out called The Manhattan Project of 2009 Energy Independence Now. http://www.themanhattanprojectof2009.com... Powerful, powerful book! Also, if you think electric cars are way out there in some futuristic lala land please check out the web site for a company Better Place. http://www.betterplace.com/ they are setting up infrastructures in San Francisco, San Jose and Oakland as well as the state of Hawaii to accommodate electric car use.I think we need to rethink all these bailouts and stimulus packages. We need to use some of these billions to bail America out of it's dependence on foreign oil. Create clean cheap energy, create millions of badly needed new green collar jobs and get out from under the grip foreign oil has on us. What a win -win situation that would be for America at large. I just don't get why they just don't get it!
By KillerB

1/4/09 at 10:50 a.m.

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annienonymous - Makes one wonder how much the credit reporting agencies are in bed with the corrupt creditor sources that give them the data to make those scores, which are built by a logarithm based on a secret formula no one really understands.

As long as we act like sheep and just accept what they do to us instead of challenge them, they'll keep hurting us by remote control.

I highly recommend you rent "Maxed Out" next time you hit Blockbuster. It's a documentary of what you're saying and a whole lot more. You are far from alone. Also good books out there, like Draut's "Strapped" (we are screwed) and anything by Professor Elizabeth Warren (how we are screwed). There's also the eBook "Punished by Plastic" (if you can find it) -- that's an attorney's expose` of how credit cards issued by national banks aren't even legal.

Runningonempty -- Use your spellchecker and put some breaks in that clump you call a post! Right now just looks like a wall of meaningless rant.

It all boils down to bailout by fatcats for fatcats, which the Republicans seem to be the party of. The rest of us as huddled masses yearning to be free are expected to just shut up and pay for all of it. Oh, yeah, we are all so screwed, but as screwees let's do some damage to the screwers in the process!

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