Now that Obama has succeeded in a credit card "reform" package, which prohibits credit card companies from running their own businesses and competing with one another, the results are pouring in.
The credit card companies are cancelling credit cards and reducing credit limits throughout the country. Google your favorite credit card company and add the word "complaints" and you can read page after page of the victims of this latest Obama outrage.
If you pass a law that says that credit card companies can't raise rates on weaker customers, then the credit card companies will simply eliminate those customers. Warren Buffett and Bill Gates (who support stupidity like this) have nothing to fear. Their credit cards will remain intact with nice fat credit limits that they don't need. But, for much of small business and a significant chunk of the middle class, credit availability is now being dramatically restricted. It's the old adage: if you need credit, you can't get it...if you don't need credit, you can have it in abundance.
It's an article of faith within the Obama Administration that if A loans money to B when B really needs it and may not have a perfect credit rating, then B is the victim and A is the villain. That's the meaning of the constant Obama demagoguery on "predatory lending."
Okay, fine. So be it. Those who provide credit to the economy have gotten the message and are no longer lending to those who need it the most. Thanks, again, Mr. President. Another body blow to the middle class and small business. Too bad if you were hoping for an economic recovery.
