Democrats can win big in November, guaranteed. Here's how:

[MannyGoldstein]

Have the Treasury guarantee all credit card debt in America, and lower the rate on existing debt to 2%.

At this point, we've guaranteed $12+ trillion in junk bank assets using taxpayer cash. Very good for the bankers (this year's bonuses were a record), but not very helpful to the bottom 99% of the economic ladder. Total credit card debt is less than $1 Trillion, so this would be guaranteeing less than 10% of what we did for the bankers. Aren't working Americans worth at least 10% of what bankers are worth?

By slashing credit card payments through ending usury, Democrats would:

1. Give many working Americans some breathing room, and some cash to spend which would in turn help the economy. Only consumer spending can pull us out of our present catastrophe, and this would help a lot.
2. Earn the undying gratitude of tens of millions of voters.

Because Treasury would do it, the Republicans should not be able to fuck with it.

Opinions sought.

[Peacetrain]

1. Manny that would go nowhere with anyone..

[MannyGoldstein]

2. Why?

Would it not work, or because elected Democrats aren't into working Americans?

[Peacetrain]

4. It would not even earn us the gratitude of the voter if that went through

I do not even know where to begin with how this would implode..

Your heart is definitely in the right place.. so many people are under water with credit cards.. and getting bankruptcy laws back to where they were before makes sense..


But guaranteeing credit card debt,it would be an open invitation to all the monetary wolves out there.. lets try this.. remember what got us in this mess again.. (we cycle through these types of credit issues pretty often actually) greed.. corporate greed.. just think back to the loans that were given during the housing crisis to people who could not afford them

[DrDan]

3. so you want to encourage more consumer debt . . .

[MannyGoldstein]

7. Not particularly.

It would only be on existing debt, lowering payments.

[dennis4868]

5. Dems can win big....

if Dem voters would stop complaining everyday damn second about Obama and realize that the man has done a hell of a lot in just 18 months to change the country for the better....yes, all of us here on DU would like some of the legislation to look different but Obama is not a damn dictator....he has to deal with the Repubs who want him to fail and many Dems in Congress who are really repubs and don't give a shit about us. He cannot put a gun to the head of all these worthless congress people to get what he wants. He has done as well as he could do for now. Plus, we will win big if we all realize that by bashing Obama we are weakening him and helping the Repubs take back control of the government.....WE ARE OUR OWN WORST ENEMY!

[MrTriumph]

8. Obama has done what about foreign currency & trade abuses?

He's a globalist. It is a race to the bottom and he is cheering globalization on.

Real Democrats have plenty to complain about with this president. His monetary and trade policies are no different than Bush's and those policies are hurting working Americans.

[dennis4868]

10. so go ahead and vote....

for the repubs who want endless war, death and destruction around the world...continue knocking Obama...that's the way to go!

[mikekohr]

9. Bingo!!!! Republicans have won 7 of the last 11 Presidential Elections

because they don't eat each other alive.

They come in a distant second to Democratic economic accomplishment see: http://bureaucountydems.blogspot.com/p/economic-record.html
and lay claim to being economic wizards.

They explode the National Debt. see:http://bureaucountydems.blogspot.com/p/national-debt.html
and lay claim to being fiscally responsible.

They CRUSH job creation see: http://bureaucountydems.blogspot.com/p/job-growth.html
and claim to understand how to control the business cycle.

They have been in charge when 9 of the last 10 recession have occurred see: http://bureaucountydems.blogspot.com/p/history-of-recessions.html
and claim to be experts on the economy

Democrats have the record, the facts and history on our side. Republicans have self discipline and unity on theirs. So far they are winning. And when they win, working people lose. And that's how they like it.

mike kohr
Bureau County Democrats
http://bureaucountydems.blogspot.com




70 YEARS OF DELIVERING FUBAR, FAILURE, AND "F"-UP" BUT WE KNEW WE COULD DEPEND ON YOU!!!!
?
?
?
?
We took 8 years to really jam it up,
and you took 20 months to give it back?
Really? You guys are such a bunch of
SUCKERS!

[Cosmocat]

19. it just is friggens surreal ...

And, a kick for the "liberal" media carrying water for them at every step ...

[DrDan]

11. bull

so if the criticism from the D's would come to a complete halt, no one would notice a 9.6% unemployment rate.
No one would notice the military moving from Iraq to Afghanistan rather than back to the U.S.
No one would notice entire school staff being fired.

You are suggesting the middle-of-the-road voter is listening more to the critical-D's than being cognizant to what is happening around them.

don't buy it.

[dennis4868]

12. If the criticsm would stop

I think most people still blame Bush for the problems in the US, including unemployment. But by expecting all of the country's problems to be solved in 18 months is unrealistic so stop bashing Obama especially when it is close to the elections.....continue doing that and we will lose everything and go back to the death and destruction party controlling the government.

The man has only been in office 18 damn months....it took 8 years for Bush to screw up the world, it's going to take more than 18 monthys to fix things, especially the worst economy in the last 80 years. Progressives have no fucking patience!

[DrDan]

30. as I said , , , Bull

voters can read each situation on their own. Whether Obama is criticized by any particular group makes little to no difference.

[Skink]

6. Obama cuts up credit cards.

would we then get an increase in our limit or a reduction?

[totodeinhere]

13. First let me charge that new computer I have been wanting on my credit card so that when this passes

I can have the US Treasury guarantee that debt for me. What a deal. And I think I'll charge a few other things that I need while I'm at it. After all, if I know that the government is going to come in and pick up the tab for me, why not?

[MannyGoldstein]

15. existing debt only

if you default, you'll still default.

[NYC_SKP]

24. Just ONE computer? Come on, go make a deposit on an Escalade and a home...

...be BAD, and then we can advocate for even more carelessness forgiveness.

:sarcasm:

People won't learn without consequences.

More regulation, yes indeed.

But blanket forgiveness for credit debt?

No, thanks, I dug out of my $40,000 silliness 10 years ago and others will have to do the same.

:patriot:

[MannyGoldstein]

26. NOT FORGIVENESS

Just lowering the interest rate through guaranteeing payment. If you default, you're still in default and the same bad things happen.

[NYC_SKP]

28. I can buy that.

Now, how to make it happen?

How to extricate those in congress who have increasingly been getting away with treating the very rich so differently from the masses.

How to do that, short of revolution?

:shrug:

[MannyGoldstein]

29. By doing it through Treasury, only the President needs to be involved.

That's what makes this exciting (at least to me...)

[customerserviceguy]

14. While I see the logic behind your opinion

it still won't work. The people who are already crushed by credit card debt are voting for Democratic candidates, and those who have their cards paid off (or manageable) will trumpet the "moral hazard" of giving a break to those who were "irresponsible'. In short, it just isn't going to convince anybody to change their minds about the election, but will further polarize Americans.

Can't we all just agree to hate the banks that were 'too big to fail' without turning millions of Americans into bailout recipients?

[MannyGoldstein]

17. i think your demographics are reversed

e.g., better off states tend to vote Democratic. But I suspect that neither of us knows the real answer.

[Milo_Bloom]

16. I fear it would just encourage an orgy of borrowing

Creating a new consumer debt bubble.

[MannyGoldstein]

18. again, only existing debt

[Milo_Bloom]

23. That doesn't change how people would react.

Ooo, my minimum payment just went from $500, down to $250 and that debt I had before is now guaranteed by the government.... HEY LOOK I CAN GET THAT SWACKERNODDLE I'VE ALWAYS WANTED.

There are also some other problems.

Say the government STARTS discussing this option you will have 2 reactions. People quickly running up debt. Other people would stop paying down debt as agressively.

I like the general concept... giving money to bankers doesn't get it into the hands of consumers, even if the money is earmarked for lending to businesses... sweetheart deals make sure whatever money is actually lent doesn't wind up where it is intended.

However, at the same time, you can't simply eliminate or control consumer debt without there being serious consequences, since people don't necessarily react they way everyone would hope.

[krawhitham]

20. Or they could just give bags of 100 dollor bills out at the polls

[Imajika]

21. I think something drastic like this will be necessary...

Your plan has huge pitfalls, but I like that your thinking big.

[MannyGoldstein]

22. And those pitfalls would be?

Thanks.

[Imajika]

27. Well, for one...

..if the debt is guaranteed, the banks aren't going to really care if people default on the amounts insured by the government. In fact, it would almost be in there interest to see that portion defaulted on since the government will just pay for it all. From the banks point of few, the faster consumers get rid of or default on that low interest debt backed by the government - the quicker they can run up new debt at the higher rates.

Either way, the banks won't care about that debt that is backed by the government. People will figure that out quickly. You'd probably start seeing massive defaults. Neither the consumer or banks would care. Instead of low interest debt, you could eventually just have the government effectively absorbing the costs of millions of peoples credit card debts. Can we really afford that?

Your also encouraging more of the very same behavior that got people so maxed out. They just got a big reprieve on the interest and probably debt itself, and your actually encouraging more of the same.

I generally agree that something big needs to happen. The entire rickety, decaying system is in danger of collapse (I think, but I could be wrong). I am just not sure about this approach.

Still, it is a big idea, it doesn't sound all bad to me, and at least your thinking big.

Just my opinion anyway.

[bigdarryl]

25. they can win big if they get some balls

[girl_interrupted]

31. You should be able to deduct the interest charged

on your credit cards on your income tax. At one time you were able to do that, why you no longer can, I don't know. And that should apply to other loans, as well. That definitely would help consumers trying to get out of credit card debt and other forms of debt. Yes, you could apply it only to existing balances to discourage unnecessary spending. Although the way the economy is going right now..if consumers stop spending, we are going to be in even bigger trouble. The Credit Card "Reform" Bill truly sucked, it is of no help to the consumer. Big disappointment. Banks that owned the credit card companies got an interest free bailout with taxpayer money, so I don't think lowering the interest rate is asking too much of them, seems fair to me. You scratch my back, I scratch yours. Unfortunately Usury still prevails.

Another thing I wonder about...At one time you could get really great interest rates on your savings accounts. Those days are long gone too. Why, I'm not sure of either.

I was really hoping President Obama was going to crack down on credit card companies & the banks that issue them, but no such luck there. It really is very insulting to consumers to make them victims of usury, while banks get interest free , no time limit for payback, bailouts with the taxdollars of the consumers they are screwing. I also thought he might make it a condition, banks get the bailouts, and they in turn stop charging unnecessary and exorbitant fees to their customers and start paying them a decent interest rate on their savings accounts too.

It always makes me wonder why so many people never question the unfair business practices that banks use or how they got themselves into such a financial mess, yet if someone complains about the ungodly interest rates on their credit cards, people automatically assume its because they are spending money recklessly, buying expensive cars or homes, when many, many times, most of the time, that isn't the case. Especially for senior citizens, who are on fixed incomes, trying to keep their heads above water, trying to keep up with the cost of living today. Food, medical, housing repairs, etc. And this is the first time since 1975 they didn't receive an increase in their SS benefits. And what about younger people, and unemployed people, with debt piling up, and no jobs to be found? Both of these groups have been relying on credit cards to get them through.

There really has to be a better way to help the middle class out.

Manny, your post made me think....I'm going to call the offices of the candidates running in my state and see what kind of response I get. If they shrug it off...I just might shrug off voting for them, when it comes time. So thanks!