Obama’s credit card bill of rights

You’re an idiot and Obama knows it – he’s going to save you from yourself (AP);

Democrat Barack Obama called for new restrictions on “predatory” credit card companies he says deceive consumers into piling up massive debt they have little hope of repaying.

“The truth is, our middle-class families are not going to be secure so long as they can’t get out of debt,” Obama said Monday, sharpening the populist rhetoric of his presidential campaign. “If we’re serious about stopping Americans from falling deeper in debt, we’ve got to crack down on predatory credit card companies that are pushing them over the edge.”

Obama pointed to studies showing that consumers have an average personal debt of more than $8,000, a load driven higher by credit cards. He said soaring credit card debt could turn into a crisis as big as the one in the subprime mortgage industry.

“The larger risk is that what’s happening in the housing market could lead to a slowdown in the entire economy,” he said.

The Illinois senator made his comments in a statement and in a discussion with debt counselors and consumers who have struggled with credit card debt.

Obama’s “credit card bill of rights” would force credit card companies to give consumers the option of dropping out of an agreement if the companies raise interest rates.

There’s already a an option for “dropping out of an agreement” – it’s called not borrowing more than you can afford to repay. When my credit fell into disrepair several years ago, the so-called predatory credit card companies were the only ones who’d give me credit so I could rebuild my credit – but I didn’t abuse it. I used it to my advantage and my credit is spotless today.

If the government puts restrictions on those credit card companies and enact a “bill of rights” (what a stupid over use of a phrase), the so-called predatory credit card companies won’t lend to poor risks. Just like government restrictions have forced banks to be careful about who has an account in their banks has created a class with no bank accounts, government restrictions will create a class with no credit.

This is more populist drivel from the Democrats – they make it sound like they’re going to bail people out, but in the long run, they’ll only make things worse for everyone. People bought houses they couldn’t afford and their losing those homes because they listened to CNBC and the other TV personalities pretending to be experts. Now they’ve got debt they can’t afford because they thought the Capitol One barbarians were funny.

But Obama’s gonnna save them. And you.

Category: Politics