Wednesday, May 20, 2009

The people are too stupid to make a smart decision

Fast forward to about 3:00 to get to the discussion about credit cards.

This is your congress in action. They think you are too stupid to make a financial decision. These credit companies didn't have to offer you unsecured credit. You didn't have to run up your debt to $20,000. Who's fault is that? Sure, they like it when you miss a payment because your contract said that if you do, they can jack up the interest rate and start charging you fees. But they also don't like it because now you are a huge credit risk to them. They are going to do their best to get THEIR money back from you. It is their right to try to collect on what you owe them whether you like it or not. If you don't want them to collect, then be responsible with your credit. You are not ENTITLED to money from the credit cards.

What is this stupid bill going to do? Well, now they have to charge higher rates to compensate them for the risk of complying with this legislation. Consumers are going to become even more wary than they already are. Credit will slow even more, people will spend less, businesses will earn less, and more layoffs will ensue. Credit destruction is the result of the whole debt binge process and its going to get even worse.

What this all boils down to is there are simply too many people in this country who feel entitled to the things they are given. They don't believe success is earned. I'm a young guy but I've already seen the leeches and looters that believe in a free lunch. These people will continue to exist, but it is up to successful people to not let them leech and loot because once they start they will not stop and will do whatever it takes to take more and more of your success from you because they feel entitled to it.

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