The amazing do nothing President?

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Well, the names would be UBS and Credit Suisse. Besiedes, there a lot of other European banks active in the US-market, as the US market of consumer credits has been growing so fast. Under which name the operate or with which companies they work together over there, I don't know.

I've read an article approx. 6 month ago deatailing the us-consumer-credit market and why it so interesting with Swiss banking. It's one of the reason Swiss banks grown so much in the USA over the last two decades. Particulary the situation with the high interest rates. It looks cheap but the laws allow high rates for people that are behind their payments. Things not possible here, because we've got law against usury, i.e. interest rates higher than 18%.

Anyway, with the high demand for cheap money (and the international surplus of cheap money) the wheel will keep on turning and all banks see good prospects in financing people stuff... that those people can't afford...

That's the vicious circle many warn of: Lending money to the consumer so he may be able to consume, while the profit from the sale is re-investet in lending money to the consumer, who again will buy stuff from credit. The profit from the sale will be re-investet into a loan to the cosnumer, the consumer buys again... oops, dual trade deficit...

 

I have heard of UBS, although I did not know it was a Swiss company. I've never heard of Credit Suisse though. Perhaps, as you mentioned, they operate in the U.S. under a different name.

While there are certainly interest rates in the U.S. higher than 18%, usually the only people who get such rates are people with poor credit or no credit. Credit cards notoriously have the highest interest rates, with some as high as the 20s. Most people I know have interest rates somewhere in the 12%-14% range.

 

Well, maybe CSFB ? Credit Suisse First Boston.

Well, credit cards get very interesting when someone can not pay the bills or only able to pay the debt back in very small amounts.

(If I translated that correctly) it's the default rates that are problematic. In case of not timely payment, the interest suddenly jumps up. According to the article I've read, the rate can jump to 48%.

Of course, it's easy to offer someone a credit card with nice looking rates of 4 or 5%, very well knowing that many people will not be able to pay their credit debts before the agreed payment date passes. And the height of default interest rates and additional fees are listed in a clear and understandable language everybody can understand and easily read with a magnifiying glass, so fine is the print.

here

here

 

It would seem that we have headed down that slope which concerned Beren. If you guys wish to discuss Swiss banks and credit card rates, please craft a new thread for the topic (I guess I'm moderating myself here as well). Otherwise, continue the topic of the "Do Nothing president" and carry on with the fun....

 

I hate to be replying after so long, but I have been busy and away from my computer a lot. Now where was I. @ Chandos the Red: Sorry I accused you insulting me. , I am a little defensive from being a Hillbilly working in the north-eastern US ( Man they were prejudice up there).
@ NOG (No Other Gods): You made my day ( and do so often) .@ Drew I will take your word on the military pay info. @ Everyone else who replied: man, this got quick. It looks like Bush is getting lucky in Iraq. He is makking a half-hearted attempt on the border. Why people are not in revolt over fuel prices is beyond me, I traded my beloved trailblazer in for a Toyota Matrix and gas prices are still killing me. Bush still has never met a spending bill he did not like, so much for the budget I guess. Congressional indescretions are still being Investigated and The President remains silent. And republican politicians are starting to worry. But at least The amazing do nothing President is showing a little life. Lucky in Iraq, a pass on gas prices and a jog at the border. I guess its better than nothing?