Obama-nomics
I was perusing another one of my favorite news sources today and stumbled upon an article in The Huffington Post by Manisha Thakor and Sharon Kedar about “Obama-nomics”: “What Obama-nomics means for Your Wallet.”
These ladies have skimmed the surface, but nicely summarized three key points of Obama’s plans.
First has to do with a universal mortgage, second involves tax preparation (more on that in another entry), and last is a move to clean up the act of the credit card companies.
Specifically:
- “Team Obama supports such steps as eliminating the universal default clauses (which allow lenders to increase your interest rate if you are late on any of your bills), prohibiting interest charges on late fees, and requiring the prompt crediting of cardholder payments.
This means if you use your credit card responsibly, by paying off the balance each month on time and in full - it can once again be YOUR friend and not your foe.”
I cannot argue with the theory that calls for keeping CC balances manageable and paying them off each month. Fortunately, I am in a financial position where I can do that.
However, I have a friend who did the same thing, until — until life intervened in the form of job loss, medical bills, and a skyrocketing cost of living.
The money was simply not coming in, so this young woman lived on credit cards.
And I don’t need to say that it wasn’t long before things escalated out of control.
My friend is hanging in there, but now I wonder about the thousands, millions of people out there, beaten down by the sour economy, who will find themselves in the same situation.
More defaults, credit card companies collapsing, more people out of work and on and on and on.
I wish I could offer you an immediate solution.
However, I do believe my cashless, tax-less model is a start.
By the way, as a preview to a complete overhaul of the current tax system, and live happily WITHOUT them, I invite you to download my report “Done with Cash” for free.
Tags: Banking Crisis, Corney's Model, Financial Crisis, Geithner, IRS, Stimulus Bill, Taxes
