"The first rule of Project Mayhem is..."

Ah, the first rule of Fight Club and Project Mayhem. If you haven't seen the movie Fight Club, you have no idea what I'm talking about. If you think the movie is about a bunch of guys fighting each other in secret clubs, then you need to watch the entire movie (or at least skip through the violence and gore) for the final scene.

In light of the latest news from the credit card companies, this could not be more appropriate. Read the latest bit of chicanery on their part: Credit card catch (Notice it was released on a Friday night for the slow news day Saturday).

I'm not suggesting we do what they did to the the credit card companies' buildings in Fight Club. We can figuratively accomplish the same result through smart legislation. It is time for a reset or at least usury laws when it comes to lending.

Notice in Candace Choi's article variable rates are tied to the prime rate, currently at around 3.25%. Yet, the federal rate that the banks loan to each other is .25%. The new floor (minimum % rate) for credit cards will be 10%. In reality, you will be paying anywhere from 15% up to 29%. Nice work if you can get it.

Side note: Why don't we hear about loan sharks anymore? The credit card companies put them out of business.

Oh, The first rule of Project Mayhem is we don't talk about Project Mayhem.

What Do We Reall Know...

Bernie Madoff was sentenced and everyone cheers, Goldman Sacks our economy and no one hears. A must read:
Goldman Sachs Sacks the U.S. Economy