Friday, November 20, 2009

A Few Points on Elizabeth Warren's Phony War On Bank Credit Card Leagalese

Bloomberg has a profile out on Elizabeth Warren that among other things provides the news that in addition to her day job at Harvard, she has been paid $114,733.04 through Sept. 30 for her TARP oversight role from where she stands on her soapbox and promises to make bank regulation even more complicated than it is, so only Harvard lawyers, like herself, hired by the likes of Goldman Sachs will be able to operate in the environment.

Her clever obfuscation comes about by claiming that credit card agreements are much too complex for the average person to understand. I agree. But she stops there, or attacks banks for all the legalise. However, if you were to pull apart the credit card agreements, I'm sure what you will find is that every paragraph is in response to some government regulation, code etc. Some at the state level, some at the federal level.

Hell, even my can of Coke-a-Cola has a bunch of legalese on it. I'm sure put on with the heavy hand of government in the background.

So does the super interventionist want to reduce the regs requiring so much legalese? Not quite. Her game is to impose even more regs and rules on banks. But in her game, it may not increase the number of paragraphs of legalese on the credit card agreements. It's even possible she will shorten it, but she will do so by more regs, which will increase the number of banks going out of business and shorten the number of competitors for the sweetheart firms that hire a bunch of Harvard brain captured lawyers that may even think they are doing, as Lloyd Blankfein might say, "God's work."

1 comment:

  1. Robert - this is classic concentrate the benefits/spread the cost of theft that all government hangers-on employ. Whether Harvard lawyers or Goldman Sachs or any of a million others who participate in this cynical use of government force it is never-ending.