FEBRUARY
19, 2006 --
Is
there No One in Washington Who Will Take Notice?
How About Federal Reserve Board Chairman Ben S. Bernanke?
The media focus on Fed Chairman Bernanke's first appearance before a House
committee was on the possibility of more interest rate hikes.
LPR is not convinced that higher interest rates hold the lid on consumer prices,
but readily agrees they have a depressing effect on the stock market.
LPR would, however, be very interested in Chairman Bernanke's view of crushing
interest rates -- reaching, at Chase, 29.99%. Send in payment of $300 on debt
of $5900 bearing 29.99% interests and see the principal reduced by $151.
This writer received an explanation from the Chase Credit Management epartment,
dated February 6 -- that bank card balances are too high, too many revolving
accounts with high balances (isn't that restating the fist allegation?) and
there have been one or more late payments in the past six months.
This writer is fairly certain he has not made late payments to Chase for six
months and more.
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Also,
whatever the size of bank balances, no account held by this writer
is in
default.
Don Imus said that he is "a fan of fairness,"speaking (in a different
context) a few weeks ago with Rep. Harold Ford, Jr. (D. Tenn.)
It is apparent to LPR that Chase and the other banks that are imposing crushing
interest rates are fans of unfairness.
Thus far, LPR has yet to hear any Washington official question the fairness,
indeed, the wisdom, of crushing credit card interest rates.
This silence is not encouraging that meaningful reform in Washington is underway
-- for it points to the continued distance between our officials and the
people.
Perhaps Chairman Bernanke would comment whether onerous interest rates are good
for the economy -- and serve the common good.
LPR has an idea that James Madison, observing demands of 29.99% interest, is
telling his colleagues, with reference to the opening sentence in Federalist
57, "they're still seeking the 'ambitious sacrifice of the many to the aggrandizement
of the few.'"
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