The Government-Banking Complex is Destroying You
Reuters is running a piece this morning with Meredith Whitney warning how the credit card crunch will be a hindrance to government's plan to have us all spend our way to "prosperity." The really infuriating part of the credit card problem is that the people who were responsible with their cards, and remain responsible, are getting screwed by an algorithm. The upcoming blow-up, as I've been predicting, is people getting slammed on their credit scores. Good people, that is. The banks - especially American Express - are cutting back credit lines to minimize risk, thus some peoples' cards are made to look like they are "maximized" and that leads to some pretty large hits to credit scores. Even people with a zero balance receive a negative hit from a reduced credit line.