Dodd's Latest Dumb Idea

Financial services analyst Tom Brown says that Chris Dodd's plan to freeze credit card rates is just his latest dumb idea and would likely force consumer credit to dry up altogether at a time when the economy needs more of it.

Here’s a basic truth in banking: The more restrictions government places on lenders’ ability to extend credit, the more expensive credit will become. We’ve already seen how lenders have responded to the bill Congress passed in May: rates have risen and fees have proliferated. Now Dodd wants to impose even further restrictions. Guess what figures to happen next? Follow this process to its logical conclusion, and credit won’t simply become even more expensive, it will dry up altogether. As I say, this is just what the economy does not need.

Thankfully, it's not like Dodd is Chairman of the Banking Committee or anything.....oops, never mind.