Let me see if I get this straight. Citibank is going to raise interest rates for all its credit cardholders. That’s the bad news.
But there’s a silver lining to this dark cloud. If a customer spends up to $750 per month (the amount varies according to the depth of the cardholder’s impoverishment) the bank will refund part, but not all, of the increase.
This is indeed good news for the household desparately trying to pay down its debt because its underwater mortgage is about to have its rates reset upward.
The bank figures this is a public service because not only are they helping their customers save money, but they’re stimulating our moribund economy by forcing its cardholders to plunge themselves further into debt.
Penury is the new prosperity.
Gosh, this sounds an awful lot like extortion.
But wait! Citibank is a too-big-to-fail bank. It, and its minions, are old pros at extortion. Look what they did to our treasury. It’s a basic law of the economy of scale that if you’re too big to fail, what would normally be considered a crime becomes a shrewd business practice.
It’s kind of like forcing an alcoholic to take another drink.