It’s Banks vs. Families, Who Will Come Out on Top?
The short version is that I studied the economics of the middle class and I began to see that credit products were becoming increasingly dangerous. Families didn’t know how much they were spending on credit and comparison among the products was practically impossible…
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The idea behind the current model is, “I will hold something shiny in front of your eye, 3.9% financing, and the way I’m going to make money is on tricks and traps that I’ve buried in the fine print: $29 there, $49 there, triple interest rate, double cycle billing, over and over and over … .”…one of the issuers took me aside and said, “We get that our business model is unsustainable over the long haul, but no one of us can jump first.” On the plane home from the meeting with the issuer I realized how broken the market is….