>This example shows a strange interaction between "private enterprise"
>(credit card companies), the government ("bankruptcy laws") and
>the consumer. The way I see credit card blowup, it ought to be
>purely a problem for the credit card companies. They continue to
>not deal reasonably with the art & science of risk management and
>so I think they deserve what they get (or don't get, as it were).
What they get is a business that's about twice as profitable as other lines of banking business, even with the high default and bankruptcy rates. Borrow money at 6%, lend it at 16% - and add onto that merchant and late payment fees - and you can take a loss now & then.
Doug