Reality

About time…

So, the Bush administration is considering an “orderly” auto bankruptcy

As I’ve said in previous posts, the best solution to the automakers’ situation is a “pre-packaged” Chapter 11 reorganization with Treasury money structured as “debtor in possession financing.” It’s good to see that the administration is finally recognizing that concept as the correct path, rather than giving the automakers just enough ever few months to prolong the agony. Hopefully Congress will recognize it, too.

Credit cards

The Office of Thrift Supervision (OTS) has finally come out with their new regulations on credit cards. While many in the banking industry won’t like them, they’re the right thing to do. For too long lenders specializing in credit cards have used predatory practices that were inherently unfair and “bottom fishers” have preyed on people struggling to reestablish their credit. It’s about time that things were changed. The credit card business was a healthy, profitable one for many years before the concept of greed stepped in.