Posted by Charity on May 19th, 2009

It seems like everyday I wake up in backward world.  Up is down.  Down is up.  People who pay their bills on time and spend within their means are the bad guys, and people who don’t are the victims.  And it’s the government’s job to rescue people from their own financial screw-ups.

First, we have the home mortgage borrowers, high risk-taking insurance giants, and the poorly-run auto makers.  Now, it’s the people who run up their credit cards and fail to pay them off.

And guess who pays for it?  The fiscally responsible.

Now that Congress is making it “fair” for people with massive credit card debt, allowing them to avoid high interest rates, the folks who use credit cards responsibly will help pay for it.

Banks are expected to look at reviving annual fees, curtailing cash-back and other rewards programs and charging interest immediately on a purchase instead of allowing a grace period of weeks, according to bank officials and trade groups.

“It will be a different business,” said Edward L. Yingling, the chief executive of the American Bankers Association, which has been lobbying Congress for more lenient legislation on behalf of the nation’s biggest banks. “Those that manage their credit well will in some degree subsidize those that have credit problems.”

Yeah, that’s fair.

Do you have any idea how hard it is to be fiscally responsible in this culture?  It’s hard.  You go without.  Not only that, but you go without while everyone else gets lots of stuff you wish you had.  It takes discipline and sacrifice.  But you do it because it is the right thing to do and you will be better off in the long run.

Until the government comes along with its bailouts and regulations and you end up paying for other people’s lack of responsibility.


What ever happened to rewarding good behavior and punishing bad behavior?

See what I mean?  Backward world.

One Response to “Another Day in Backward World”

  1. It’s not clear to me how the measures described will mean that those who manage their credit well will be subsidizing those who don’t.