Thursday, October 2, 2008

Stupidity of government

Once again the hand of government screws things up for the good guys in order to protect the bad guys. The latest brilliant scheme by the government is to regulate credit card companies into the ground. They will impose restrictions on what kind of products credit cards can offer, what interest rates can be charged and a host of other intrusive regulation.

This effort is once again to protect the stupid from being stupid. I guess the intention is to shield the deadbeats from taking on too much debt and - GOD FORBID - having to pay a penalty when they screw up.

The end result is now the end of the 0% credit card offer. I dig those offers and have used them a lot. if a credit card wants to give me free money for 12 months, I'll take that offer every day. I take that free money and invest it in a 4% CD, then pay it back at the end of the 12 months. But now thanks to the new regulation I won't be able to do that anymore.

So let's review. There is a credit crunch happening. The goal of the government is to get credit flowing. And they do this by making it harder for credit card companies - ie those that give out credit - to conduct business. This is what government does every single time. It takes a bad situation and makes it worse. Government is inherently set up to do this. It is irrational. It is inefficient. It is just plain evil. And yet for some unknown reason a solid majority of people want even more of it.

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