Re: On Credit Cards

[Sven R Larson <larson@xxxxxx>]

OK, let's forget the credit card license. An insurance is a good idea,
but also a complicated one since you're spending someone else's money
until your card bill is paid. The insurance is supposed to cover for
payment default, and since the insurance - at least technically - is
also someone else's money the construction of the insurance is a
delicate matter. On the other hand it could actually come to work to the
benefit of household financial stability if it can establish a clear
link between payment default and insurance costs. I just can't see
immediately how it would work.

/srl

Harry Veeder wrote:
>
> My primary suggestion was mandatory credit card insurance.
> This does require some government oversight.
> Forget about the other stuff.
>
> Harry Veeder
>

--
Sven R Larson
PhD; Assistant professor of economics
Department of Social Sciences, Bldg. 22.2
Roskilde University
Pb 260
DK-4000 Roskilde, Denmark
Phone: (+45) 4674 2910