>

Thursday, February 19, 2009

Do you feel - stimulated...?

A Day in the Life in the current economic crisis.

Or, more accurately, a day in the life of actual, you know, people in the current economic crisis. And why this isn't going to get fixed.

Allow me to introduce Mr. and Mrs. G. They are tag-end boomers, in their early (in her case, about to be mid) fifties. Mr. G is an alpha geek in the world of tech, but lacks a particular piece of paper that the completely nonfunctional HR industry requires as a buzzpoint. Mrs. G is a member in good standing of the literary community, having produced - over twenty years - a dozen critically acclaimed novels.

Mr. G has been out of work for 25 of the past 27 months. Mrs. G, who suffers from multiple sclerosis and degenerative spondylosis (for those unfamiliar with the second, it basically means her spinal connections are slowly dissolving. Yes, it hurts. No, it is no more curable or fixable than the MS is.), gets a monthly disability cheque. They have been subsisting largely on the occasional book advance - selling out a print run or earning out your advance three times over does not, in the current world of publishing, guarantee you a royalty cheque in under two years - and on the kindness of friends and family.

Creditors have been ringing. One of the most persistent of these is Citicorp. Yes, the Citicorp that just availed itself of the bailout money, first under Bush, now under Obama. Yes, the Citicorp that just got itself a new corporate jet with some of that selfsame bailout money. That Citicorp. They are ringing to let us know that, because we have missed timely payments, they are jumping our monthly interest rate from 9.4% to 26.2%. That will raise the monthly payments from approximately $68 to approximately $275.

Now. What's wrong with this picture? Or, rather, with this economic model? Will someone explain the logic, here? "Hmmmm. $68 a month is beyond their ability to handle on a regular basis, because of an uncertain economy. We want our money; they owe it to us. Hmmmmm, what to do, what do do....? cue lightbulb going off Got it! Of course! So simple, so elegant, so very effective! Let's triple their rate and quintuple their payment! What's really cool is that we've already got several billion dollars - that's billion with a Buh! - from their tax dollars, thank you former and current presidents! This way, we can drive them insane enough to sell off their belongings to pay us an exorbitant predatory interest rate, AND collect from their taxes. We get paid TWICE! Awesome!"

Dear President Obama: Do you really want to watch the current downslide grind to a screeching halt, and in a way that won't cost the government a dime?

Cap interest rates on consumer lending. Hard cap. No loopholes.

I know, I know, Larry Summers just felt a cold chill run down his back. Timmy Geithner's head just exploded (for the record, I would pay folding green cash money to see that. I'd even pay Citibank). Butbutbut! That isn't FAIR! That stifles the market! What are you, a progressive or - oh, heh, whoops, right, give me a minute to adjust the progressive mask.

Think about it. Seriously. We are operating under the economic assumption that the American consumer exists for one purpose, and one purpose only: to take it in the ass, without benefit of lube, courtesy of the consumer credit industry.

Wrong. Show me anything anywhere outside of Friedmanism that says corporate Amerika is somehow guaranteed a profit? Where is that written and who wrote it? Never seen it. Have you?

Cap the rates. Put a criminal fine on predatory lenders who abuse it. And for fuck's sake, stop trying to create an economic slave class while printing money for Citicorp and GE Money and the rest of those guys to suckle off of. Otherwise, you will solve nothing.

Oh, and something else to consider: that stimulus package, more specifically the $1000cheque Mr and Mrs G will theoretically be getting at some point. That money is supposed to be "put back into the economy" - that's its stated purpose. To stimulate the economy.

Problem is, it will be going nowhere near consumer goods. It will go to Citicorp et al, to get them the fuck off our backs. So they'll get paid yet again.

Yes, indeed, I'd feel stimulated too, were I the CEO of Citicorp.

0 Comments:

Post a Comment

<< Home