Steve Tuttle, economic prophet

By Felix Salmon
October 8, 2009
Steve Tuttle:


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What would you consider a reasonable cost of borrowing $20? On an annualized basis, my guess is you’d say something between 5% and 100%, or $1 and $20. Which means that you’re not Steve Tuttle:

Why not charge at least $100 if you overdraft at the ATM? That seems a reasonable fee to pay to get $20 that you don’t have from the bank.

I think that Tuttle is on to something here. Implement a law saying that every time anybody borrows money, even if it’s only for a day or two, they need to pay back five times what they borrowed. Alternatively, just get the Fed to raise the Fed funds rate to somewhere in the 10,000% range.

That would do wonders for the dollar — no more political fire on that front — and would at a stroke get rid of all that horrible debt which we want to convert to equity. Of course, stocks would plunge to unprecedented lows, but just imagine the buying opportunities!

Ryan Chittum and Dan Gross are being far too short-sighted here. Tuttle isn’t a moronic nonsense-peddler, he’s a veritable prophet! (Indeed, his views on debt are positively Islamic.) So next time you ridicule a CNBC talking head for spouting gibberish, just remember. There are some views which are so close to the bone they can only appear in Newsweek.

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Comments
3 comments so far

Felix, you hit the nail on the head here. Tuttle’s post is the dumbest thing I’ve read in a long time. And that’s saying something. regards, John

No need to contemplate interest rates at 10,000% when a Fed funds rate of 10% would blow the economy to kingdom come.

Could Ben Bernanke ever pull a Volcker and kill inflation, even if he wanted to, under these circumstances?

Posted by Dan | Report as abusive

Oh my God. Tuttle’s article was shockingly stupid, even for the internet.

He argues that overdraft fees are a good thing because they punish people who make bad decisions. And yet he writes “Are we so pathetic that we need Wells Fargo to be our mommy?”

And then he brings up debtor’s prison. WTF? The guy whines about government run amok. What could be a bigger government intervention into the private consumer credit business than tossing delinquent borrowers in jail?

Posted by Oberon | Report as abusive
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