VilimBlog

“Authorities in two states were criticized amid revelations that Clemmons was allowed to walk the streets despite a teenage crime spree in Arkansas that landed him an 108-year prison sentence. He was released early after then-Gov. Mike Huckabee commuted his sentence.” [link]

This will probably come back in a Dukakisian way in 2012…

There’s a New York Times editorial about a piece of legislation that Sen. Chris Dodd is proposing that would affect the credit card industry. Most interesting is the way the op-ed author mostly nakedly shows his bias:

Mr. Dodd’s new proposal may also wind up dealing a serious blow to consumers — and the economy. If banks find themselves unable to raise rates, many will limit their risk by severely restricting consumer credit. Many people will find their credit cards canceled, and new customers will be turned away. This will come on top of an already tight consumer credit market: banks sent out 2.1 billion direct-mail credit card solicitations in the third quarter of 2006, according to the research firm Mintel; this year in the same quarter, they sent out 391 million. A further contraction in consumer credit could devastate our nascent recovery.

Let me get the straight, in 3Q 2006, banks sent out 2.1 / 0.3 = 7 credit card solicitations for every man, woman, and child in the United States, and now it’s a problem if they’re only sending 391 / 304 = slightly more than 1 credit card solicitation per m, w, and c? How about they send zero unsolicited applications a year?

I remember when I got my first credit card in college, I didn’t even go for the freebie (adware) t-shirt or coupon to Subways, or whatever the hell it was they were offering. I was a deadbeat from the start, I just filled out the paper form and submitted it because I wanted a small line of credit. And what was that line of credit to begin with? $300! (in 1998 dollars) Nothing that could ever get me into trouble. I remember when going on trips to various places, my parents would give me their credit cards and say, “Just in case you do get into trouble…”, but this was always manageable and came with oversight.

If people are losing access to unsolicited credit they can’t afford, then perhaps that is a good thing. The fact of the matter is that, at the day-to-day level, societies can function adequately without credit. As in, I’ve seen many Germans carry and use cash more often than plastic, and in fact, most restaurants don’t take credit cards (which is a good thing).  It’s only when big purchases come up here that credit cards may come out or long-term loans are made with understandable, and usually flat, interest repayment terms. But certainly not loans with interest in the range of 30%.

If credit card companies want to drive their customers away, that’s fine. And if, during this whole process, people learn how to better manage their debt, then all the better.  Someone needs to get the societal meme out among teens that cash is cool again.

On the other hand: Somehow, I don’t think there is a contraction in consumer credit as much as there is a contraction in the ability of average people to generate income.

So the locksmith I’ve been going to has been really helpful. I yanked out the lock module on my living room door this morning and brought it to him to see if he could do something with it. It uses the same key as my bedroom lock, but needed a slight trim on the keyhole to let that key pass through. Anyway, in about fifteen minutes, the locksmith had the lock oiled and working again. When I got home, I had to rehang the door because two washers that should have been placed in the hinges hadn’t been replaced when the old tenants moved out, and I had been too lazy to do that. In any case, everything works again, the lock bolt goes into the slot properly, and everything is nice and secure.