http://blogs.reuters.com/macroscope/2012/10/01/why-the-fed-shouldnt-raise-rates-to-discipline-congress/ Shining a light on the dismal science Wed, 19 Jun 2013 13:41:03 +0000 hourly 1 http://wordpress.org/?v=3.4.2 http://blogs.reuters.com/macroscope/2012/10/01/why-the-fed-shouldnt-raise-rates-to-discipline-congress/comment-page-1/#comment-14630 Barts Tue, 02 Oct 2012 14:26:41 +0000 http://blogs.reuters.com/macroscope/?p=8488#comment-14630 Too true. Yet, this is exactly what happens to consumers. If someone is late on a credit card payrment, the rates often double or triple and the credit limit can be reduced, making it much harder for the person too manage any cash flow issues. It's interesting that the exact strategy which is deemed bad for economic growth is the same strategy upon which the banking industry bases its risk management of debtors. Too true. Yet, this is exactly what happens to consumers. If someone is late on a credit card payrment, the rates often double or triple and the credit limit can be reduced, making it much harder for the person too manage any cash flow issues. It’s interesting that the exact strategy which is deemed bad for economic growth is the same strategy upon which the banking industry bases its risk management of debtors.

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