It Figures

Does True Competition Among Credit Card Issuers Exist?

The most transparent and objective measure of competition in an industry is the profitability of the participants. Sustained above average profitability is a sign of lack of competition - think drug companies in the '80's and '90's, or MSFT a decade ago.

Given that most credit card issuers are losing money right now, and have for the last year or so, it is hard to characterize the sector as lacking competition in any economic sense.

Folks would benefit from trying to separate their personal "beefs" with these companies from their economic/investment analysis

Lower Credit Card Fees = Lower Credit Card Profits

After a several month period of adjustment the card issuers will have new profit models from which to operate. These will probably include new and higher fees, smaller credit lines, higher interest rates and reduced availability for less creditworthy borrowers. So the price of limiting sometimes egregious fees for the late and non-payers is higher costs and less convienence for all of us. And less and much more expensive credit for those who need access to credit most.

Good job, Washington!

Capital One Defies Even Constanza Logic

Most of your facts are approximately accurate but your conclusion is wrong. Those paying attention knew all these terrible things were coming months ago. That's why the stock trades in the teens today instead of near $50, where it was in the fall when they sold stock to bolster their capital. You are too late.