"....a colossal, inexcusable mistake."

[kentuck]

http://www.tnr.com/etc.mhtml?pid=2584

<snip>
It is our hope that the House of Representatives will consider this important piece of legislation in an expedited manner. We stand ready to work with you and our colleagues on both sides of the aisle to pass bankruptcy reform into law.

Sincerely,

Rep. Ellen O. Tauscher
Rep. Adam Smith
Rep. Ron Kind
Rep. Artur Davis
Rep. Carolyn McCarthy
Rep. John Larson
Rep. Stephanie Herseth
Rep. Dennis Moore
Rep. Mike McIntyre
Rep. Joe Crowley
Rep. Jay Israel
Rep. David Wu
Rep. Diane Hooley
Rep. Melissa Bean
Rep. Jim Davis
Rep. Harold E. Ford, Jr.
Rep. Ed Case
Rep. Jay Inslee
Rep. Shelley Berkeley
Rep. Gregory W. Meeks

This magazine and multiple other opinion outlets on the center-left have written at length about how the bill in question is a truly contemptible piece of legislation. Worse, there is no plausible political rationale for supporting it other than to appease credit card companies. As Paul Krugman pointed out today, the bill makes no exceptions for families wiped out by medical expenses (which make up more than half of all bankruptcies) or for bankruptcy cases involving active-duty soldiers, yet it leaves any number of loopholes in place for large corporations. The political imagery here so obviously benefits anyone who'd oppose the bill you're left to conclude that the only way a congressman could possibly support it is through a craven and reflexive willingness to do the bidding of big business.

But, even worse than that, support for the bill by Democratic moderates betrays a striking obliviousness to the most important debate underway within the Democratic Party. Moderate Democrats have been under assault from grassroots liberals lately for selling out Democratic values in their rush to appease conservative interests. I normally think this criticism is highly misplaced, and that moderates have exactly the right instincts when it comes to social issues and foreign policy, even most economic issues. But in this case the moderates proved the liberals' point for them, which could set back the cause of moderates within the party for months, if not years. It really is a colossal, inexcusable mistake.

[sendero]

1. I used to be a moderate..

... but no more. The Dems who enabled this bill need to be enabled out of office.

[acmejack]

2. Amen!

The DLC and the so-called Third Way are complete BS.

[sui generis]

3. absolutely -- vote them out

the issue is that it is already nearly impossible to file for bankruptcy protection from credit card debt. Issue #2: removing caps on interest rates means that they are essentially creating the very problems that bankruptcy was intended to resolve. I'm just surprised they didn't also amend the bill to require you to have a credit balance or go to jail!

MOST people who end up with a problem that is only resolvable through bankruptcy get there because of medical bills or some reason other than buying the latest Prada and LaCroix; usually unemployment and trying to keep a roof over their family's heads.

This so-called America is really getting disgusting now. If our elected representatives stop representing our interests consistently in favor of big corporations we're no longer a democracy.

There is only one thing we can do: fire them.

[Yosie]

4. A different tack: This Bill + Class Action "Reform"

The Big Banks think they have won. I think they stepped into a hornets' nest.

Instead of resolving credit card "issues" in a neat and clean class action with only one lawyer for all of the customers -- they will have to respond in thousands of individual "small claims court" cases filed and pending in thousands of "small claims courts" across the country by thousands of separate lawyers across the country.

Just the defense is horribly expensive - and the banks can not "remove" these thousands of cases into Federal Court and "consolidate" them into one class action -- without the consent of the plaintiffs. They asked to limit "abusive and frivolous class actions" -- so they gave up a big advantage of class actions.

And, the affirmative defense of res judicata -- where a favorable decision in one case controls all others -- is not available. They asked to limit "abusive and frivolous class actions" -- so they gave up another big advantage of class actions.

But, while a favorable decision for the customer in one case is not binding stare decisis precedent on the other cases -- but it is "persuasive."

And, as the auto makers learned with punitive damages in their early "lemon law" cases -- you can not say that the thousands of individual lawyers for individual plaintiffs are an "illegal conspiracy."

The banks won't learn -- and they will buried in thousands of these "mini law suits" -- at tremendous expenses.

Sometimes - when you get what you ask for ..... ;)

:) I may come out of retirement for this melange. ;)

[kentuck]

6. One step at a time....

they'll take care of that in the next term.

[Straight Shooter]

7. Very interesting perspective. Is this a boost for trial lawyers?

Wouldn't that be a hoot! :D

I'm hoping it will backfire on credit card companies, that the average consumer will begin looking upon them as a "Sixteen tons, whaddaya get, another day older and deeper in debt. Saint Peter, don'tcha call me, cuz I can't go, I owe my soul to the credit card store."

Another poster on DU mentioned that if you can't pay for it now, how do you expect to pay for it later with interest added on top, and maybe a penalty, too?

Heaven help those who need their credit cards for medical bills.

edit: The banks won't learn -- and they will buried in thousands of these "mini law suits" -- at tremendous expenses.

Does that mean our service fees will go up so they can cover their expenses? x(

[Yosie]

8. Background

The 1970's law suits on how interest was calculated on unpaid balances, and on the check clearing practice of first clearing debits, and then clearing deposits -- were both teams of young lawyers just out of law school.

They were not OEO "Poverty Law' - "Neighborhood Legal Services" employees -- they were "Junior Associates" at small law firms representing union locals - who were told - "take some pro bono - as a learning experience" -- and they whipped Citi.

There is no doubt the banks will try to tack on a service charge to cover "litigation" -- and there is no doubt that they will lose customers.

[Wright Patman]

5. We have

the best Congress money can buy.

That has been true for at least the last 25 years. Probably it's been true for most of the history of this country with only a few "progressive" periods such as the frenzied and frantic attempts to dig America out of the Great Depression before communists could use the failure of capitalism to take over our government.

I'm not all that wealthy, but I am relatively so since I live in a fairly rural area of dirt-poor, lower to lower-middle class fundies.

It has been somewhat entertaining to watch the machinery of government-sponsored chicanery which has been coming down the pike since * took office. I am guilty of Schadenfreude, the German term for taking pleasure in others' misfortunes.

To put it crudely and in the parlance of Sodom and Gomorrah they so love to quote, they are being "screwed without lube."

Still, their plaudits for the "Man of God" in the White House rise ever higher, even as the GOP gang-rapers pin them to the wall and shove their heads down the toilet, where they will be ordered to say, "Let a thousand turds blossom!"

The other main reason, other than the gay-bashing, for this sick affection for * is that they are all warmongers at heart. Their Jesus came "not to bring peace, but a sword" and they are too stupid to realize the language was symbolic and metaphorical. He spoke in allegorical terms most often using parables.

But I do not know how much longer the war-induced psychosis can last before they are all out on the street. They don't have any money to begin with and thus are not able to grasp the concept that even a country as large as the U.S. cannot go on with this kind of "defense" spending forever without bankrupting itself.

This soon-to-be-bankrupt nation's overseas creditors need to demand that Uncle Sam be forced to pay back his debts on the same terms his minions in Congress have just ordered of our financially-distressed citizenry.