The problem with trying to legislate a free market

[Maverickz]

http://www.investors.com/NewsAndAna...01109301851/Thank-Dodd-Frank-For-That-Fee.htm

Damned as an "outrage" in the press, Bank of America's just-announced $5 monthly fee for ATM use was a logical and predictable result of a Dodd- Frank financial bill that fixed prices. Guess who gets to pay for it?

....

That little bomb is now why battered Bank of America has no choice but to impose a $5 monthly fee — $60 a year — to consumers to make up for lost revenue.

....

Now that consumers will be stuck with that fee, they can thank Dodd, Frank and Obama for that special little spike in inflation tailored just for them.

....

As banks are forced to impose fees, it would not be surprising if some consumers responded by moving to a cash economy — the kind they have in places such as Argentina and Zimbabwe, where government meddling has trashed the banking system.

That's what happens in all economies where a government attempts to legislate the transactions of willing buyers and willing sellers and impose its own vision of what prices for particular transactions should be.

 

[Free Thinker]

whoever wrote that is a dumb ass. a free market means if a company charges 5 bucks a month and you dont like it you are free to move your money somewhere else. there are hundreds of banks and nonbank credit card companies out there to choose from. nothing stopping you from seeking out a company that doesnt charge the fee. competition will force boa to follow along.

 

[ajcrshr]

Quote from Free Thinker:

whoever wrote that is a dumb ass. a free market means if a company charges 5 bucks a month and you dont like it you are free to move your money somewhere else. there are hundreds of banks and nonbank credit card companies out there to choose from. nothing stopping you from seeking out a company that doesnt charge the fee. competition will force boa to follow along.

sounds like some can't get their money out..

http://video.godlikeproductions.com...g_Customer_Withdrawals?id=0d97e662a32f63a8490

 

[dandxg]

How do we explain China artificially pegging their currency to ours? How do explain China. Not by any means are they entirely free market and they are eating our lunch.

What about the Fed? They trash the dollar to spur exports?

 

[Maverickz]

Quote from Free Thinker:

whoever wrote that is a dumb ass. a free market means if a company charges 5 bucks a month and you dont like it you are free to move your money somewhere else. there are hundreds of banks and nonbank credit card companies out there to choose from. nothing stopping you from seeking out a company that doesnt charge the fee. competition will force boa to follow along.

That is not the point. The point is the government steps in and forces banks to cut a source of revenue in half, the banks just raise prices somewhere else to compensate. If they would have raised taxes on the banks instead, then the banks would have just raised fees somewhere else to compensate for that too.

Every time the government does something that hurts business such as cap income streams, raise taxes, add new regulations....ALL costs get passed down to consumers and it's the consumer that gets screwed.

 

[Stok]

Quote from Maverickz:

That is not the point. The point is the government steps in and forces banks to cut a source of revenue in half, the banks just raise prices somewhere else to compensate. If they would have raised taxes on the banks instead, then the banks would have just raised fees somewhere else to compensate for that too.

Every time the government does something that hurts business such as cap income streams, raise taxes, add new regulations....ALL costs get passed down to consumers and it's the consumer that gets screwed.

+1

That is what makes the FTT so dangerous. Populous movement and at the end it is the little guys paying for the taxes/fees...but is sold as going after the big bad bankers..the masses are too dumb to understand that guberments always fuck things up and the little guy pays.

 

[dandxg]

Its true that a couple of high interest checking accounts are going good bye thanks to Dodd Frank. I was getting 3 % for 10-15 debit transactions per month and a few other basic requirements but with those fees cut in half bank has less margin to pay me so they can't pay and lose all of those customers like me.

 

[Maverickz]

Quote from dandxg:

How do we explain China artificially pegging their currency to ours? How do explain China. Not by any means are they entirely free market and they are eating our lunch.

What about the Fed? They trash the dollar to spur exports?

China is violating free trade practices with currency manipulation. There is a bill in Congress now to try and address that (although not the way I would do it).

The Fed is part of the problem not part of the solution. The best thing Government can do to help business is get out of the way. I don't mean all regulation should be trashed, it needs to be streamlined to protect consumers with the least impact to business as possible, not the most impact as it seems they are doing today.

 

[Stok]

And by the way, dodd-frank is one of the worst bills ever written.

And look who the two cronies that wrote it!! frank a la fannie mae needs to let lower income people get houses!! And dodd a la give me my low interest mortgage from countrywide for favors.

All FRAUDS!!

 

[Free Thinker]

Quote from Maverickz:

That is not the point. The point is the government steps in and forces banks to cut a source of revenue in half, the banks just raise prices somewhere else to compensate. If they would have raised taxes on the banks instead, then the banks would have just raised fees somewhere else to compensate for that too.

Every time the government does something that hurts business such as cap income streams, raise taxes, add new regulations....ALL costs get passed down to consumers and it's the consumer that gets screwed.

the banks were screwing the retailers who have no choice about taking credit cards in oder to subsidise debit card holders as a marketing scheme. once again regulations had to be instigated to stop the abuse. regulations almost always are a result of some abuse.
its still going on in the credit card arena where banks are screwing retailers and forcing them to subsidise credit card marketing through cash back schemes.