Watch Those Credit Cards!

My sister called yesterday to tell me about her latest experience with the credit card companies. She got a letter from one card company Saturday, saying that her introductory rate ended on July 31st and her new rate zoomed to over 21%. Here's the kicker though, she got the letter August 29th and it stated in the letter that her new interest rate was effective July 31st. She is reporting them to the Better Business Bureau. I told her she should collect her cash back, transfer the balance to a lower interest card and cancel the card!

I cancelled all my accounts with the card companies who've decided that they don't care about my business any more. If they are raising rates to usurious levels, then it's time to let them go. It is possible some of these banks could make good investments, since their profits will most likely shoot up from this type of unscrupulous banking, but in the end it will most likely lead to a consumer backlash, so I won't be putting any money in bank stocks. I do still own stock in two banks, New York Bank Corp and Merchants Bank of Vermont. They are both long time holdings in my regular stock portfolio.

In the news, stock futures are down, Madoff's beach house is up for sale and the Chinese are on a spending spree for luxury items in London. I liked the comment from one Chinese tourist when she said they were, "looking for branded high quality merchandise." Apparently they don't want the cheap stuff made in China.