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Windmills Tilted, Scared Cows Butchered, Lies Skewered on the Lance of Reality ... or something to that effect.


Tuesday, November 12, 2013

Well, I'll Be Damned ...

In 2009, the US government passed bipartisan legislation designed to make the credit card industry fairer, and hold down credit card fees. Economists are flabbergasted to find that it did those things.
Floyd Norris reports that when economists decided to study the effects of the law, they expected that they would be negligible, due to cunning credit card companies finding loopholes and such. Nope:
But his expectation was wrong. The study came to a conclusion that surprised Mr. Mahoney and his colleagues: The regulation worked. It cut down the costs of credit cards, particularly for borrowers with poor credit... [The economists estimate] that the law is saving American consumers $20.8 billion a year.

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