The thought came to mind a week or so ago, but I predict this will soon be before us:

Government “management” of credit bureaus.

Maybe not directly.  Maybe by massive regulation, or actually Federal Statute, or, as the case seems to be these days, pure, unadulterated political pressure by the crowds sent out to demonize an industry, a social class, specific demographics, or talk show hosts.

Here’s my take:  Many are getting behind on payments of all sorts:  Vehicle loans, mortgages, credit cards, utility bills, etc, etc.  Take too long to pay and the “formula” decrements your score.  I know, that’s basic knowledge.

The “afterglow” of this then cascades down through a series of other financial issues:  Can’t get the cell phone from the big companies.  Did you realize when you open a bank account, they run a credit check?  I’ve seen it.  Moving and are re-establishing a household (be it rented or owned) and need utilities, and would like to watch cable TV?  credit check.  While you may get the service, you may have to fork over over a hundred, to several hundred doallars to be connected for electricity, water, or entertainment.

Net result?  More turndowns for services and loans that used to be part of the economy that makes the system flow, as money is passed around for goods and services.  Then, the producers/suppliers see a downturn in revenue, which means they have a harder time making payroll, keeping up maintenance, and doing necessary upgrades for their customers.

Who will scream first, the consumers or various industries, to their elected officials, demanding “change” to the system business put in place to protect itself from economic losses?  I am betting someone, or some corporations will soon, and then, just like Congress setting up pseudo-private mortgage lenders, they will decide things need to be made fair again, and those who have fallen behind, shouldn’t be penalized for their choices, because (I’m sure you see this coming) “everyone is doing it!”

And what’s a favorite method of the liberals?  “Leveling the playing field.”  That translates to relativism applied to a standard, which, then shifts the systems tectonics plates, as we have and will see more of in the “Bailout” and “Stimulus” programs.

Longer term net result?  Increase of the economic risk companies will take, for they will now see higher numbers, from what ever method applied by politicians or political correctness (I can envisison ACORN playing a role here to “help” communities), removing the ability to deny access to scarce funds to those who, have delveleoped a track record of not paying.

Certainly, there will be, as always, some people who are deserving of the help, but, as Americans do, they’ll figure out how to “arrive” in the selected category, so they, too may get what is being handed to those who don’t deserve it in the first place, and, once again, cause the static analysis numbers to be overrun by reality.

So, keep your ear to the railroad track for the coming of the hewn cry to “fix” the creidt reporting system.