Today in 1775, the U.S. postal system is established by the Second Continental Congress, with Benjamin Franklin as its first postmaster general.

The Forecast

Participation is the new consumption.

The News

Amid death threats, Paul the Octopus retires from the oracle business.

Wisdom

"It's been a prevalent notion. Fallen sparks. Fragments of vessels broken at the Creation. And someday, somehow, before the end, a gathering back to home. A messenger from the Kingdom, arriving at the last moment. But I tell you there is no such message, no such home -- only the millions of last moments . . . nothing more. Our history is an aggregate of last moments." :: Thomas Pynchon

The Monthly Report

...the need for recognition and status is at the heart of every consumer trend.


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© 2010 The Layman's Almanac in cooperation with the Click Boom Pow, Inc. All rights reserved.

Your Epitomic Guide to Understanding the Card Act

Greed

...effectively optimize your pay later plastic.

Jeremy Stephensen

On February 22, 2010 there'll be new regulations for how credit card companies function & this new set of laws certainly has several cascading downstream effects. However, understanding these new rules can give you a head start on how to effectively optimize your pay later plastic. Prompt our Congress is not, & this bill was actually passed back in May of 09; nonetheless, are you ready to see what the major changes lay ahead? Well, let's take a look:



1. No retroactive rate hikes in your interest rate

2. Statements must be mailed 21 days before the due date

3. Payment dates cannot suddenly change without notice

4. Statements must tell you how long it will take you to pay off your balance & how much interest you will pay if you only pay the minimum

5. 45 days of notice before a hike to your interest rate

6. Payment received by 5 PM are considered on-time & if payments are received the day after a weekend / holiday these payments are considered on-time



These changes do appear to be a step in the right direction. The Card Act will prevent many types of rate hikes as well as curb some truly insane assessed fees for being tardy by a few hours. However, there are too many holes in the bill to truly cover the Consumer. Here are a few inconsistencies that the C.A. failed to cover & how we'll still pay dearly if we don't fully understand this new legislation:


1. No cap on fees and/or interest rates

2. Variable interest rates

3. Surcharges on transactions

4. Raising interest rates and locking them in

5. Higher minimum monthly payments

6. Some old fees might return (annual fees/inactivity fees)


Of course, the fact remains that the business of credit cards is to generate profits. If the moneylenders don't generate said profits, then they cease to exist & as is the nature of Capitalism, will be replaced by another company that'll get the job done. Congress attempts - optimistically, we hope - to save consumers from credit card company misconduct, but Congress cannot systemically change the foundation of our economy when they are often receiving benefits (monetary among others) from the very same companies. Remember, the more you know about policy, & the more you manage your spending habits, the more control you'll have as a Consumer.

Past Features

Funambules

The Life & Times of E.E. Hale :: She Loves Me Not

The Life & Times of E.E. Hale :: The Finishing Touch

Ask a Layman

Where do my 911 calls go after they've been recorded?


Into a database file of course! However, & keep this close to the chest, sources say that Google stores your frantic & frankly embarrassing 911 call in a maximum security shipping container on a Venezuelan off-shore cargo ship. Watch yourself. Everything you've ever searched for on Google is also stored in said container. Big brother, I mean Google is watching.


Do you have a question?
ask@laymansalmanac.com