RT: Starbucks CEO Howard Schultz is financially illiterate; should stay in the kitchen

[maxkeiser]

Run time: 02:20 https://www.youtube.com/watch?v=RD6I9qPLsM8   Posted on YouTube: May 16, 2011 By YouTube Member: RussiaToday Views on YouTube: 237   Posted on DU: May 16, 2011 By DU Member: maxkeiser Views on DU: 1157

 

[90-percent]

1. As usual

I like Max.

And he does return emails!

-90% jimmy

[latinattack78]

2. Credit vs Debit

So Max claims that people using credit cards is what is helping drive up the price of Coffee, does this effect take place when people use debit cards?

[ljm2002]

4. I would think not...

...because you do not create any new debt when you use a debit card, you just spend your own money that you already have.

[JDPriestly]

3. So, we should demand that interest rates on our savings be raised.

The banks are handing out all this credit to consumers and charging high rates for the credit, but they don't pass any of their profits on to the depositors in the banks. That encourages people to borrow rather than to save.

The US Fed should bite the bullet and increase interest rates to a reasonable amount. They make it too easy for people to borrow.

A lot of the people you see using credit cards are paying the debt by the end of the billing month. So, the situation is not quite as bad as it looks.

In the US the big problems are debts for education, cars, travel, clothes, electronic stuff and housing. People who charge their restaurant meals and grocery bills should be able to pay that off as soon as the bill arrives. It's just an easier way to pay, a bit safer than carrying a lot of cash (you can call and cancel your card if you lose your wallet, but you will never get your cash back) and less time consuming than balancing a checkbook when you pay the grocery bill by check.

[demwing]

5. So, does this principle also apply to the price of gas?

It our fault for using credit cards to fill the tank? Not the market speculators?