XPost: sac.politics, alt.california, ca.politics   
   XPost: ny.politics, nyc.politics   
   From: Intelligent@savetheworldmsn.com   
      
   On 10/11/2020 8:22 PM, Intelligent Party wrote:   
   > Prime + 5%   
   > = Federal Funds + 8% basically.   
   >   
   > And that should be the max credit card interest rate allowed, is an idea,   
   unless   
   > anyone is against it.   
   >   
   >   
   > The Prime rate is presently 3.25%:   
   > https://institute.jpmorganchase.com/about/our-business/historical-prime-rate   
   >   
   > Prime is the rate charged to the most credit-worthy borrowers, on secured   
   property.   
   >   
   >   
   > And the Federal Funds rate is presently 0%-.25%:   
   > https://tradingeconomics.com/united-states/interest-rate   
   >   
   > Federal Funds is the rate the Fed lends at, to Banks to meet their overnight   
   > reserve requirements.   
   >   
   >   
   > When the Federal Funds rate changes in the future, the max allowed credit   
   card   
   > rate would change, but only for new purchases.   
   >   
   > Banks already repackage credit card balance and risk and sell them to other   
   > lenders, so they can get out of the fixed rate.   
   >   
   >   
   > The most subprime CCC Bonds presently pay about 11%, with a 50% default rate,   
   > which equals 5.5%, so this would be less than credit cards, which are   
   unsecured.   
   > https://www.wsj.com/market-data/bonds/benchmarks   
   >   
   >   
   > Reduce Max Credit Card Rate To Prime + 5%   
   >   
   >   
   > Currently 3.25% + 5% = 8.25%   
   >   
   > Likewise Federal Funds + 8%   
   > Currently 0.25% + 8% = 8.25%   
      
   Bump   
      
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