The Competent Subsidizing The Careless

clipped from www.powerlineblog.com Historically, it's been a truism that banks don't make money on credit card customers who pay off their bills every month. All of that is about to change, as Congress has just enacted new credit card regulations intended to limit banks' ability to collect money from distressed or incompetent customers. The New York Times explains the consequences: "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." The competent subsidizing the careless--that's classic Democratic Party policy. So it inserted these words amid the legalese: "If you call (612) xxx-xxxx, we will give you $50." As I recall, they sent out tens of thousands of notices and got five or ten phone calls.