No one effectively restricted the amount of cash banks had to have on hand to collateralize their investment activities. No one seems to have rated the banks' ability to fund their own speculative investing. The only means for banks to remain solvent (which is arguable) have been the TARP funds and increases in cash receipts from credit card debtors. The unrestricted ability of banks to increase fee income for services formerly not charged to their cardholders and to increase interest rates on purchases and cash advances, If a bank decides unilaterally to charge card holders $0.35 for each borrowed dollar, the terms and conditions leave no room for negotiation or for a timely, simple appeal process. If credit card use were priced, then the price of use inflated 35 percent. Any product or service paid for by credit card rose 35 percent after the transaction. That is what has caused consumer shock and business failures.

Ongoing, personal banking relationships normally require a person to maintain a level of business with the bank, such as savings accounts or CDs, exceeding $100,000 except in rare situations. For the majority of their customers, banks do not have the staff with whom to establish a personal banking relationshiip..

I've only recently learned just how credit scores are determined, and it's a joke to me. Actually having a lot of potential debt is a reason to give someone more potential debt? Really? Without even factoring in their income? I would argue that anyone not knowledgeable on this idea would naturally think the opposite, and it's only after they give in to the "way it is" do they tend to defend the idea – did anyone really think this was a good indicator of smart lending when they first heard it?

"I do wonder why a personal line of credit is so much more difficult to get than a credit card" – you hit the nail on the head: because a personal line of credit was always meant to be a real (meaning smart and informed) loan – credit card companies turned that concept into a veil for a money-making scheme, where they plan out the amount of defaults they can take and decide it's worth it anyway. They are not the same.

I also hope more people start to realize what you did – that personal relationships really can trump "when banks compete, you win" over the long haul. Don't get me wrong, competition is good, but forcing the highest level of competition often only serves to run all competitors into the ground.