Well the banks are still struggling to find enough cash to keep the financial industry wheels moving. You can tell that times are hard because while ordinary people are struggling to pay the electicity bills, gas bills, and mortgage repayments, the bankers are still sitting in their plush offices in some of the highest priced office space in the country. No doubt they shed a tear for us all as they sup fine wines over an expensive lunch.

They brought it all on themselves. The credit crunch wasn’t caused by the customers. We have all been doing our best to keep them in business and we have all racked up huge debts and enabled the banks to make vast profits on our debts. We have definitely been doing our bit to help them, intentionally or otherwise.

I was looking at a credit card statement just the other day. The interest rate is listed at about 20% APR.

The Bank Of England rate setting committe agreed to maintain the bank rate at just 5% so why are interest rates on credit cards so high? I have often wondered about this in the past. I don’t remember exactly what the interst rate on credit cards was when the bank rate was around 10% or so but I have a sneaky feeling it was about 28%

If that is right then the current rate should be about 14% APR and that would sound about right to me. 20% APR with a bank rate a quarter of that is simply excessive. They rip us off because they can but times are changing and people are becoming far more aware of how the banks have treated us as a stupid cash cow for so many years.

The banks are famously unhelpful when you need help badly. Maybe the banks will find that the great british public will be less than helpful when they are crying out for customers to keep the fine wines flowing with their dinners and th rents paid on their luxury offices.

So, should we feel sorry for the bankers? Yes, of course. We should care as much for them as they care for us. i.e. not one tiny little bit

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Filed under: Banking

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