Tell that to your local bank.
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No, I didn’t. You are inferring lot of incorrect things. The administration’s programs, tariff’s, lower dollar, higher deficit are nothing but a massive wealth transfer to rich.
Leap, thanks for stating the obvious about paying off your bill in cycle. Congrats on joining everybody on fool.com. It’s a nice club. A great club. Some might say the only club.
My statements were about the nature of the problem. If policy reduces or removes the profit center while NOT minimizing the liability of the same group, other terms must change.
OR.
Credit is not issued. It becomes impossible to get a credit account without a daily accumulating margin expense. The world of "pay within cycle"goes…
People get wealthier when they are not in debt. No kidding.
The banks will survive. You know.
Besides I thought someone posted the banks have losses in their credit card divisions already.
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I’m not familiar with P/L impacts at the various consumer credit value chain companies. They are definitely talking their book.
BUuuuuuuuut.
We understand some basic common assumptions:
- Consumer Credit Companies will continue to find a profit driver
- They will leave any business which is not profitable (or a significant loss leader driving people to OTHER profitable business)
- The consumer (you, me, everyone) will continue to pay the fees (hidden or otherwise) where we use THEIR products.
- Any strategy that passes the fee structure on to the B/C or B/B merchant in these systems will be passed on to the consumer (see #3 above). Credit fees at dinner for CC use is one example.
- fewer bankruptcies would benefit everyone involved bringing down societal and business costs while improving most other businesses revenues.