Bankruptcy Bill: Breach of Faith

Redstate.org has written a good analysis of the bankruptcy bill, much along the same lines as I have written. I won't quote the whole thing, but the summary is

I'm not going to bore you with a million links to analyses of the bill and its politics -- they are found easily enough. The point here is fairly simple: The bill is basically a gift to corporate lenders that tightens requirements on consumers while paradoxically loosening restrictions on credit card companies. The argument for the bill goes something like this: The record number of bankruptcies in America is indicative of a lack of personal responsibility made possible through too-lax bankruptcy laws; these bankruptcies in turn force up costs and interest rates for responsible consumers; ergo, if we tighten bankruptcy requirements, American consumers and the credit industry will be better off.

This argument is almost wholly false for several reasons

A commenter on that post includes excerpts from various documents on the web that elucidate the problems with the bill.