The Credit Economy

This was made possible by the invention of the Credit Card and its close relative, the Debit Card. And an invention in marketing: the time payment.

The net result was that the banks owned more and more. And sometimes too much.

Consider Real Estate.

My parents were able to retire because their house was worth so much. Lots of other people were not so lucky, and in 1978 the whole economy went into a Recession.

People knew money was not worth as much, so they invested in their housing. Imagine their shock when this was not worth as much either!.

They voted for men who promised to make them great again.

There was another complication: the money in all those credit cards could easily be taken by people who didn't own the card!

The protection against this was simple: monitor the amount spent closely, and demand a refund if the charge was not authorized!

But the bank behind the card must make it easy to do this. And in Costa Rica (and many other places) the banks will not do this.

Incompetent banking is as dangerous as dishonest banking.