Christopher Lowe

Here's the deal, right?

Most credit card interest rates are over 20%, which is remarkably high compared to other interest rates.

The reason is it's an unsecured loan.

If you ultimately find you can't pay, you can walk away from it.

That comes with penalties, of course, but from a bank's perspective, it's still money lent and lost.

The way they cover those losses is by charging everybody these extraordinarily high interest rates.

Even good borrowers pay over 20%.

High-risk borrowers, well, they pay the highest rates.

If the rate is capped at 10, banks simply won't be able to cover their losses.

Delinquencies on credit cards are running at about 12.5%.

The math doesn't work.

And as a result...

For many people, what they'll find is the lowest interest rate is zero because that's what you pay when you don't have a card.

although that's absolutely right then you know also traditionally republicans don't much like price controls which is basically what this is uh... i i don't think it will sail through but it is an astonishing thing uh... coming from a republican president it's it's the kind of suggestion we expect to hear from people like bernie sanders and elizabeth warren but uh... populism these days

It's a two-party process.

Thank you, David.