Making Credit Good Again

In this recession, we seek the boogeyman. If we can identify a villain, the recourse is simple: Slay it (or neutralize it or bail it out). Identify the problem; find the solution. The search has centered on the credit industry, the vast network of lenders eager to loan Americans money. In the housing sector, an explosion of subprime lenders gave borrowers deals that were truly too good to be true, trapping them in impossible loans. In the retail sector, credit card vendors flooded mailboxes, offering easy entree to the good life broadcast on nightly commercials. From one vantage, the credit industry is to blame for our economic woes.