Looking back at BofA and Netflix.

Both of those companies are great symbols of everything wrong with a lot of American businesses. Out of touch, arrogant, and setting themselves up for a fall. There may even be criminal conduct taking place.

Netflix had built up a large and loyal customer following. Then out of nowhere is the announcement that they raising rates by 60%. They also added that the company was being split into the CD by mail component (Netflix) and an Internet streaming branch called Quickster (not sure on the spelling). Americans are people of convince. The Netflix CEO had been told by a friend he did not want to have to keep up with two separate accounts but the plan went on despite this warning and insight into the general public's thinking. The 60% rate hike is what really cause the proverbial, uh, waste, to hit the fan. It was not the announcement but rather the smug reasoning that there was more revenue to make. Not anything about licence renewals or costs, just a chance to grab more money.

The lost money and customers.

They dared the customers to follow through on threats to leave. So they did. Nearly 800,000. No Quixter (or however you spell it) though the rate remains at $16 up from $10.

In an era of price gouging and rip offs, the customers struck hard and reminded everyone who signs the paycheck.

Bank of America had its own "Netflix moment". What is seen by may as the greediest and most corrupt bank outside of Goldman Sachs tried to affix a $5 monthly charge on debit cards. In other words, it will cost you $5 a month ($60 a year) to use your own money. That pushed a lot of people towards smaller banks and credit unions.

Bank of America CEO Monyihan replied that BofA "had a right to seek profit" but the tone of that backfired. Combined with this arrogance was the "robo-signing" seizure of houses that was continuing despite serious doubts about paperwork and perhaps legality. What did they think was going to happen?

Droves of people left Bank of America and no other bank would follow BofA's lead on the new fee. Bank of America tried to say that having fewer customers worked in their favor (yeah, right...) but anyone with a TV sees many new BofA commercials with suddenly friendly spokespeople extolling the virtues of superior customer service and new apps.

I have a better idea: Tape to every Netflix and BofA office a sign that reads "THE CUSTOMER IS OUR BOSS."

Once again, Economics 101.