cistavoda

So when is the bank heist planning DO?

FFlash

Hey, I am just a pleb! But if you own a printing machine now, I am in! I dont care if it prints money or boarding passes, I will take them.

oliver2002

Fortunately or unfortunately the 'printing miles for banks' business model for airlines has not taken off: credit cards in Europe earn very little for banks due to EU caps on the commission for personal credit cards and the very low apetite for credit card debt by the average EU consumer (thank god).

FFlash

Curious, how does it all work in the US?

I have no knowledge about the american system other than I understand you are a dead man if you dont have a credit card, and your value as a human being is measured on CC rating

CPH-Flyer

The main driver of profit for credit card companies in the US is that a lot of people use revolving payments, which is an easy to get yet expensive line of credit. That basically pays for the party.

FFlash

I dont get this. While I understand it is okay to take credit/debt if you can offset it somewhere else better, I dont understand what is the point of living in a revolving due ”velkakierre in finnish” (unless U know you are gonna die soon and live the last hours overspending and leaving the bill to others&#128556. Somebody is stupid here…not me…(I am just ay-idiot)

CPH-Flyer

I don't disagree that the revolving payment is a terrible line of credit to use. But fact is, people do it a lot in the US, and that's why there can profitably be so many credit card benefits

WilcoRoger

Blame it on the US educational system (financial analphabets) + consumerism ("I want it all, I want it now" as the late Mr Mercury put it)

Yes, the dumb ones finance the clever ones' perks

oliver2002

The commission earned on all transactions is about 2-3% for Visa/MC (EU: 0.3%) and 4.5% for Amex, so with every transaction they give you some of their commission back in form of points. That pays for the miles. The fun (for the bank) starts when people can't pay for the charges to the CC and 'carry a balance', ie pay 10-20% interest on the balance. The average american adult carried 6200$ of such debt in 2019. https://www.cnbc.com/select/average-...ance-by-state/

Europeans use different debt options like the equally stupid 'buy now pay later' system that Klarna offers or a line of credit/overdraft in your giro account. Credit cards are usually set up to be paid in full at the end of the month.

intuition

The modern day usurers. It is always those who can't afford stuff that ends up paying way too much for it.

oliver2002

Well, my mother always taught me never to live beyond my means, ie if you can afford it, you don't buy it. I guess I'm old school that way

intuition

Well, I was told "never put yourself into debt", and I think the closest to a creditcard in the house was a petrol card. Which I guess created a foundation for a healthy (stingy says my SO ) relationship with money.

Anyway, I was mostly reflecting over the poverty-trap in these financing schemes, mostly used by the ill afforded.

zxcv1

If /r/antiwork is any guidance, the US system is designed to force the poorest or most vulnerable people to take on debt just to survive. This extracts even more perks for the rich from the backs of the poor. It's a good system for the debt-free and rich, as the poorest class basically sets the parameters of the system such that the system just barely keeps them alive but otherwise completely enslaved in awful contracts. These parameters keep the rich safe for their entire lives. E.g. landlords keeping the rent at the maximum % of income such that the tenant just barely stays alive and has to even live on debt a little bit all the while banks refusing these people mortgages forcing them to rent for their lives, even if the mortgage payments would be lower than the rent. It's a good system to those who own the houses.

There was a post the other day where a billionaire owner asked his manager what is the best type of employee. The answer according to the billionaire is someone with financial obligations, debt, mortgage, and or a family, as they can be trapped in bad contracts due to desperation and they work hard because their survival depends on it. Another post claimed a car dealer owner got his dealers to buy cars they can't afford, because afterwards the dealers worked day and night to make their payments - and fat income streams to the owner scalping from the work in the process. Offering Universal Basic Income would afford employees to select jobs and tilt the power of balance from owners to the workers. Capitalism is a system that works for those who own the means of production. Nothing will be done to change this power dynamic. The best is regulated capitalism and regulated finance industry as we see in e.g. the nordic countries, while in the us capitalism and power is too unregulated. With proper regulation the 2008 finance crisis would have been avoided, but the interests of the rich outweighed the interests of the masses in US capitalism.

r2d2

Well, over 20 years ago I had a job where many of my colleagues were based in the US. They made almost the same in USD as I made in FIM, something between 200 000 and 300 000 a year. Still these guys had huge debt, including a lot of credit card debt. They just had the American need of showing off and lived a more lavish lifestyle than they could afford. It was always a horror to have lunch with them, as they always insisted on going to restaurants where a simple lunch cost $80 (they didn't understand the Finnish daily allowance system where you have to pay for you meals yourself on business trips).

FFlash

Happens here as well😄 I discussed some time back with a sales director and asked him how does he make his sales reps excel. He responded he just takes them on luxury car and boat shops etc and grows their luxury appetite and wants…okay while powerful method, I wouldnt like to work for hjm😅
(and in the same controversy, I want to fly First class every week😬😬&#128556