Friday March 04, 2005

GI JOE FUBAR. I knew the Bankruptcy Bill was bad, but this just piss-gilds the turd-blossom:

You may have read of the hardship on the families of those who have been called to fight in Iraq, including, of course, severe financial stress leading to many bankruptcies. Democrats in the Senate tried to put an amendment on this bill exempting military personnel, and the Republicans voted it down.

Now, you might imagine the Soldiers' and Sailors' Relief Bill of 1940 still limits the servicemen's interest rates on prior debt to 6 percent during active duty. Congress even revised that bill about a year ago to strengthen its protections: per the American Forces Press Service, "The new relief act also makes it clear the 6-percent limitation on interest rates for pre-service debts requires a reduction in monthly payments, and any interest in excess of 6 percent is forgiven, not deferred..."

But I see lots of military sites like this one and this one warning GIs about high rates. What gives?

My guess is that military families whose breadwinners have had their service extended by the infamous stop-loss orders are finding it necessary to take on new debt. Which debts are not covered by the law. Of which the Senators' banking-industry masters must be aware.

As I give the forces of evil heaps of credit (at no interest!) for Machiavellian chutzpah, I expect they'll hash this one out in a very public way so that the folks in the armed forces catch a small break, leaving us civilians suckers in a (literally) compromised position. That would be a twofer in a way. We did the right thing by our fighting men. Now, you drains-on-society, pony up!

Or maybe they'll just soak the soldiers and sailors too. They have a mandate. They can do whatever they want.
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