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]]> By: Martin Brock http://cafehayek.com/2008/01/better-than-bon.html/comment-page-1#comment-20006 Martin Brock Tue, 08 Jan 2008 14:09:54 +0000 http://localhost/wordpress/?p=3461#comment-20006 <p>Credit is a good thing, for sure, but without more detail, this article could be an argument for subprime mortgages too, and conflating credit with aid is a mistake. Credit does not and cannot substitute for insurance and charity and many other useful expenditures. If a hurricane destroys someone's house, we can't expect to solve the problem with credit, because the person's credit presumably was in the old house, and he might not be worthy of enough credit for two houses while possessing only one. [I'm not using "worthy" in any moralistic sense here.] We must sell him insurance first, or we must be charitable, or we must let him be homeless. Credit is not a panacea.<br /> </p> Credit is a good thing, for sure, but without more detail, this article could be an argument for subprime mortgages too, and conflating credit with aid is a mistake. Credit does not and cannot substitute for insurance and charity and many other useful expenditures. If a hurricane destroys someone's house, we can't expect to solve the problem with credit, because the person's credit presumably was in the old house, and he might not be worthy of enough credit for two houses while possessing only one. [I'm not using "worthy" in any moralistic sense here.] We must sell him insurance first, or we must be charitable, or we must let him be homeless. Credit is not a panacea.

]]> By: Martin Brock http://cafehayek.com/2008/01/better-than-bon.html/comment-page-1#comment-20005 Martin Brock Tue, 08 Jan 2008 14:08:51 +0000 http://localhost/wordpress/?p=3461#comment-20005 <p>Credit is a good thing, for sure, but without more detail, this article could be an argument for subprime mortgages too, and conflating credit with aid is a mistake. Credit does not and cannot substitute for insurance and charity and many other useful expenditures. If a hurricane destroys someone's house, we can't expect to solve the problem with credit, because the person's credit presumably was in the old house, and he might not be worthy of enough credit for two houses while possessing only one. [I'm not using "worthy" in any moralistic sense here.] We must sell him insurance first, or we must be charitable, or we must let him be homeless. Credit is no use to an invalid either. Credit is not a panacea.<br /> </p> Credit is a good thing, for sure, but without more detail, this article could be an argument for subprime mortgages too, and conflating credit with aid is a mistake. Credit does not and cannot substitute for insurance and charity and many other useful expenditures. If a hurricane destroys someone's house, we can't expect to solve the problem with credit, because the person's credit presumably was in the old house, and he might not be worthy of enough credit for two houses while possessing only one. [I'm not using "worthy" in any moralistic sense here.] We must sell him insurance first, or we must be charitable, or we must let him be homeless. Credit is no use to an invalid either. Credit is not a panacea.

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