So the fella whose mismanaged his affairs, and consequently sports a 600 credit score, can finance a brand new car – but only at an interest rate of 12%… The problem is, he may not be able to afford it? While the guy whose managed his affairs well, and consequently sports an 800 score, can finance the same car at an easily affordable 2%…

More evidence that our system tilts in favor of the fortunate… The 800 scorer makes out, the 600er gets screwed… It’s as if those who go to school, work hard, pay off their student loans, and save for their futures should be rewarded with opportunities not available to those who choose otherwise… Blatantly unfair!!

The problem folks isn’t government, it’s the free market… In the case of lending, banks are free to charge rates commensurate with risk… Lending to someone with a history of not honoring his commitments is risky business and therefore the banks require a higher return on investment… The government needs to put a stop to this prejudice and force lenders to treat everyone equally…

One solution would be to require banks to pool the risk: Instead of charging one customer 12% and the other 2%, split the difference and charge them both 7%… The banks still make out fine… In fact, there’d be a dramatic pick up in pickup sales and, consequently, loans… A greater number of subprime borrowers could get into cars they couldn’t previously afford, and the greater demand would force prices and production higher. Everyone would be driving brand new cars and the economy would be booming!!

Hmm?? Sound at all familiar? Think subprime mortgages… Think real estate bubble… Think Barney Frank 2003: