Saturday, June 14, 2008

President McCain's Fiscal Responsibility; How The Rich Get Rich

Pay Amex fee. Don't pay bills. Invest money. Make money, with extra-low interest borrowed money. Of course this is all Cindy; it would be news to the pres.
The Huffington Post says that "according to a prior disclosure form filed in May that was provided to The Huffington Post, a significant amount of the McCains' credit card debt is being held by American Express at an interest rate of zero percent."

This is not an unusual practice for American Express, especially when dealing with customers with the kind of high net worth that Cindy McCain has -- instead of collecting interest in these cases, the company charges high annual fees. And, despite appearances, this debt actually seems to make good financial sense for the McCains. In fact, they're probably making money by carrying the debt, because their return from investing the money is almost certainly higher than the interest they're paying.

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