Sudden Strike

So. Yesterday I got my bill from GMAC Mortgage Co. As I write this, I wonder how it got to be "GMAC Mortgage". This is a credit account that I've had since 1984. - 25 years. At that time, when I signed up, it was "AAA" - and was affiliated with the roadside assistance company. Over the years, the name on the billing statement has changed several times. Don't even know when it became "GMAC" - the last entry I have in my online bill pay is FIA Card Services...and that was a change from something else.

Anyhow, over the years as I've used this account, whoever owned it would send me a congratulatory letter saying since I'd managed my account so well, they were increasing my credit limit....last month I had $24, 500 worth of credit on that account. I lent my daughter, who was getting her Masters in Architecture, a bunch of money to get her through those last years of school - there is a balance of about $14K on this account at the moment - at 7.99 percent. And just to be clear, I always pay "better than agreed", i.e. I pay more than the minimum amount.; I am never late.

To get back to yesterday. I opened the bill and much to my surprise, it reflected a 22.49 percent interest rate - effectively doubling my minimum monthly payment.

I called them up, of course and here is what I was told: The girl at customer service said I was eligible to talk to the "rates" girl. And when I talked with her, she said, "There was a notice in your last bill (if so, I never saw it) that said we would increase your rates unless you rejected the rate increase." "Of course I reject the rate increase!" I responded. "Who wouldn't?" She went on to update my employment information, my annual income, etc. and followed up with, "We will return your rate to 7.99 percent, but we are lowering your credit limit to $20k (or something like that). "Fine", I said "I don't want to borrow any more money anyway."

And this is what I thought when I hung up: This bank has availed itself of TARP money - taxpayers money - large quantities of it. And having done so, it's increasing the credit rates and lowering the credit limits of completely tried and true, reliable, never late customers. In fact, if I had not called and had the rate lowered, I would have been put that much closer to actually defaulting on a debt that was at no risk before their action. "This is not good", I said to myself.

If this is happening to me, it's happening to a whole lot of people. I'm not particularly special, yet people are trying to shove me over a cliff.

So what are the banks doing with all that money???? I know Congress has a committee to investigate...because they don't know either. We (the taxpayers) have bought up a bunch of their bad debt already...and given them wads of cash....and their response is to increase interest rates on good customers and lower credit lines? What was going on before the TARP money?...were they so far over the edge that this is now required? And what is requiring that formerly good credit customers should now be pushed over the cliff? And how and why did banks get so far over the edge? As individuals, we experience natural and fairly prompt consequences of bad money management....why would these same consequences not have been working for the banks? Why, I think the question is, did it all appear so suddenly?

Like the spike in oil prices, and the precipitous decline of same...it's the suddenness that I find puzzling.

In my personal finances, I can see trouble coming for a long time....it's rarely a "surprise"....why all this last minute "surprise" stuff? We've seen the trouble coming with Social Security and Medicare for YEARS already.....and they aren't even the primary cause, - yet- , of our distress! But this bank hubbub is like going over an unexpected falls....whoosh! O0ps! gurgle......

And where is all that money going? I really need to know. I really need the explanation in order to stop the voices in my head that tell me about those 50 rich guys who now have all the money...whose slaves we have suddenly become....(and remember to be thankful for your lousy underpaid job because at least you have a job).

The 60's hippie in me wants to burn my credit cards.....refuse to play further.....demonstrate in the streets - "No! You've got enough of my money!" I want to say. "No more. Period. And I'm not buying any more of that crap from China, either.

"Don't want it, don't need it. What I need, I'll buy locally, from some actual person, not a multi-national corporation with global headquarters in Dubai. I need food, shelter, clothing, and something productive to do. That's it. Well and maybe a phone. ... and just this one lamp. That's IT! That's all I need! ... maybe just the occasional airplane ride....But not often!! And I'd rather hire a local pilot to fly me!

"I am totally over Greed. Greed sucks. A family of four just does not require an income of $50 million a year....does not need it....to pursue extreme wealth is an illness and should be treated like any other addiction - detox in a monastery, court ordered 12 step programs and all." This is what I'd say at the demonstration where we are burning our credit cards. I'd be very animated about it.

It would be the suddenness of it that would, if recent events are predictive, be so effective.

I propose that we surprise the world of finance by our sudden refusal to play....then maybe they'd see how great we've been til now... and start valuing us again. A General Strike!....Europeans and their Balkan neighbors do it all the time.

Of course I know this makes no sense. But what about this financial meltdown does make sense? And, at the rate we're going, none of us will be able to play, anyway, so we've got nothing to loose....think about it.....a day off work, milling around in the streets with your friends, complaining about money and singing protest songs like "ain't gonna work on Maggie's farm no more"....what could be more fun than that??