Mish did have a good post .

 

ZH repeated it.

Money down at the bottom is way too tight.  Credit card rates astronomical.  And churn way too high.

We need a better risk equalization.  If I am a lousy risk, fine, put me in the lousy risk category, but the cost of churn is way to high to have me go on and off the cards. 

Credit should always be there, even at some enormous fee.  The idea is to let us keep the credit identity in the card format, just reprogram it as my risk changes.

There is no reason for credit failure to make out identity disappear. In my case, it was tax disputes, but the idea still holds, let me have a credit card in the risk group called tax cheats. I do not mind, I would still want the programmable card.