Even as the fundies rattle the leash, the House moves to placate the GOP’s real masters by approving the corporate-friendly bankruptcy bill 302-126. “Its passage by Congress is a victory for executives in the credit card, retail and auto financing industries who have pushed it for nearly a decade.” But, not to worry, y’all — the base is protected: The bill “preserve[s] loopholes that enable wealthy individuals who file for bankruptcy to shield unlimited amounts of money in complex trusts and in multimillion-dollar homes in states including Texas and Florida.”
2 thoughts on “Morally Bankrupt, pt. II.”
Comments are closed.
Kevin, do you make any allowance, though, that making it harder to declare bankruptcy will create incentives to provide credit and reduce the public costs. After all, when someone defaults on their loans, it places a huge burden on society that we all (including the poor) have to pay.
Hi, HS…thanks for posting. Two points: First, even if, as you suggest, bankruptcy reform was a dire social need, I think you’ll agree that this bill — with its ridiculous provisions that favor wealthy debtors over the poor and large conglomerates over small businesses — is unfairly constructed to say the least. Second, if loan-defaulting was really causing so much damage to the economy at large, you’d think credit card companies wouldn’t be chomping at the bit to resupply bankrupted people with easy credit. In fact, it seems these companies already have all the incentive they need to provide credit — money hand over fist.
Besides, experience has shown that the best way to get companies to work in the public interest is probably not to give them sweetheart deals and hope they do the right thing by people.