Redbrickbear said:
When you look at credit card interest rates, it becomes clear that:
(1) Lending standards and default rates are so astronomically bad that these companies have to charge 5x the prime to remain profitable.
(2) This sector has consolidated to the point that its monopolistic nature prevents a competitior from charging 2x the prime and poaching business.
Neither is a good take for a stable free market economy. Neither affect me personally because I dont carry credit card balances. But I understand that in an economy where inflation unleashed by Biden and Harris is destroying the purchasing power of most household salaries, that such people are trying to plug holes on the dyke with whatever they can, including using credit card debt for daily necessities. And since I like living in a stable society, I do need to care about things that affect other Americans.