Trey Jackson has the video of Elizabeth Warren debating Todd Zywicki.
Good stuff. Warren gets the nod on this one. Zywicki implied that since bankruptcies increased while the economy improved, it by definition meant the increase was because of fraud. This is one of the central dishonest arguments for the bill.
Remember, from the pdf I mentioned before:
The bankruptcy filing rate is a symptom. It is not the disease. Some people do abuse the bankruptcy system, but the overwhelming majority of people in bankruptcy are in financial distress as a result of job loss, medical expense, divorce, or a combination of those causes. In our view, the fundamental change over the last ten years has been the way that credit is marketed to consumers. Credit card lenders have become more aggressive in marketing their products, and a large, very profitable, market has emerged in subprime lending. Increased risk is part of the business model. Therefore, it should not come as a surprise that as credit is extended to riskier and riskier borrowers, a greater number default when faced with a financial reversal. Nonetheless, consumer lending remains highly profitable, even under current law.
But even more maddening is the assertion that the increased bankruptcy filing rate is a problem. Yes, of course it's a problem. But who is it afflicting? The profitable credit card companies with the financial models that already take the bankruptcy filing rate into account? Or the individuals and families that are experiencing such hardship that they are finding it more necessary to declare bankruptcy? Congress believes that it's the credit card companies that deserve the rescuing.
By the way, to dismiss with a canard - no one is arguing that poor people should not have access to credit. It's fine to use a credit card for emergency funds or short term expenses that will be paid off. But the credit card companies are marketing their product as extra disposable income. Their financial interests are to put people in long term debt at high interest rates. Their job is to create the demand. They are very, very good at it. Personal responsibility doesn't mean we're required to accept the presence of temptation.
Posted by tunesmith at March 18, 2005 01:02 AM
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» Warren vs. Zywicki on Dobbs: Decision to Warren from BizzyBlog.com
Seems I'm not the only one going after Todd Zywicki, who appears to have become the face of the pro-bankruptcy "reform" effort. Harvard Law professor Elizabeth Warren faced off with Zywicki in a "Lou Dobbs Tonight" segment Thursday night. Warren's ... [Read More]
Tracked on March 18, 2005 09:45 AM