Personal Debt vs Bank Debt
The Personal Debt of Americans is at an all-time high and the unsecured debt, such as credit card debt is at the largest interest rate to fed funds rates margins ever. The exurbanite interest allowed by the current Bankruptcy Law does not appear to be a priority of either the Obama Administration or Congress. While the Congress bandies about Billions of Dollars in Bailouts to Financial Firms the Economy sees no relief and no bottom. Currently, Congress is trying to pass the Obama Administration Stimulus Proposal that even if passed will not have a meaningful impact on the state of the economy for at least 6-9 months and most likely 2-3 years. The Federal Government can immediately stimulate economic activity by passing legislation that limits interest rates to a set percentage over the Prime Rate and makes it illegal for lenders to charge set fees for late payments. A set fee for a late payment as opposed to a percentage of the payment effectively increases the interest rate that lend...