Unpaid credit cards surge

Here’s a great example of having wrong motivation factors in place:

  1. Issue subprime loans to a variety of people.
  2. Announce a government-supported plan to bailout existing debtors only if they have poor credit score.
  3. Watch the rest of those guys try to decrease their credit score by missing credit card payments.
  4. Have the malaises of real estate markets transfer to credit card market, previously unaffected.

Wonder if the Freakonomics blog will pick it up.

Posted in Money at December 24th, 2007. Trackback URI: trackback

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