The problem with trying to legislate a free market

Discussion in 'Economics' started by Maverickz, Oct 4, 2011.

  1. As I already said the consumer is the one ALWAYS paying the price.

    OLD WAY:
    Banks charged retailers 44 cents per debit card transaction.
    Retailers did NOT absorb this cost they passed it on to consumers. Although that 44 cents averaged into many different products probably made the cost invisible to consumers.

    NEW WAY:
    Banks can now only charge 21 cents per debit card transaction.
    Retailers did NOT lower their prices to reflect the lower cost, they are just pocketing the difference.
    Banks are now increasing other fees to replace the lost revenue.
    The consumer is now still paying the increased cost to the retailers AND the new fees all thanks to Obama, Dodd and Frank trying to "help".

    No thanks. We don't need this kind of help.
     
    #11     Oct 4, 2011
  2. piezoe

    piezoe

    You don't suppose. do you, that BAC is desperate for money after they made very bad decisions that cost them dearly? That this new charge has nothing to do with the Dodd Frank Bill, but that is just a smoke screen. No of course not, corporations, especially banks, would NEVER lie.
     
    #12     Oct 4, 2011
  3. piezoe

    piezoe

    Indeed. corporations are always right and always for the little guy, and government always fucks things up and can't do anything right. It's pretty simple really! :D
     
    #13     Oct 4, 2011

  4. OLD WAY Banks charged retailers 44 cents per debit card transaction.
    Retailers did NOT absorb this cost they passed it on to consumers MOST OF WHICH DID NOT USE DEBIT CARDS. is that fair. why shouldnt the users of the debit cards carry the cost?
     
    #14     Oct 4, 2011
  5. They probably are desperate for money. First they have a major income stream cut in half by Dodd-Frank then the US government filed a lawsuit against them and 16 other banks over the whole toxic mortgage fiasco which was pushed on them by Bill Clinton. Oddly left out of the suit are Fannie and Freddy who were probably more culpable in this fiasco than any other lending institutions.
     
    #15     Oct 4, 2011
  6. piezoe

    piezoe

    Why do you want an explanation. Isn't it obvious? (Oh, forgive me. You're not a rocket scientist)
     
    #16     Oct 4, 2011
  7. The problem is retailers did not change their prices after Dodd-Frank! This means EVERYONE is still paying for the old transaction costs AND debit card users are now paying even more. You think THAT is fair?
     
    #17     Oct 4, 2011
  8. piezoe

    piezoe

    Indeed, can we sue Fanny and Freddie? Opps, that would be like suing ourselves.
     
    #18     Oct 4, 2011
  9. how can you know that? did you question every retailer?
     
    #19     Oct 4, 2011
  10. piezoe

    piezoe

    I don't suppose that it has ever occurred to you that you might have everything exactly backwards.

    I'll admit that I don't know that that is the case. But could it be possible that America, the first country to perfect capitalism, is now suffering from "capitalism gone wild"? (I can't just can't wait for the video.:D )
     
    #20     Oct 4, 2011