It is not difficult to lend out money. That is the reason credit card companies and banks big or small are using it to generate big pot of cash to pay off their loss from their mortgage crisis. They give our “free” loans to trap consumers to take out more debt. Then they charge them with high fees of anything imaginable or unimaginable to rag in cash. It is not just credit card fees. The banks also charge whatever fees they can dream up in saving accounts, chequing accounts. Here is a great Frontline documentary about the issue.

Dubai is also a good example. Banks are giving away money because it was a hip thing to do in the Middle East oil rich countries. Dubai’s debt is so big that it can just stop paying and all the banks can do nothing about it but absorb the losses and charge it to their customers by raising their fees again. It is nice to be rich (or appears to be rich). They can take the money and run.