Banks, Credit Cards ~ Generous? Smart?

I read this particular article in NYTimes early March which was quite interesting to see. These are some exceptional and extreme times in the global financial system and such times ask for some similar exceptional & extreme measures.

So when I read about banks and credit card companies making deals over the amount to be paid by the consumers I was amazed. I mean shouldn't it be trying to get every penny from the people to keep things running? Are they being generous or are they being smart?

The truth is that people cant pay the money they have taken on credit and these companies and banks know that as well. Hence, they would contact people and tell them, we will let go of 50% of your credit if you pay the other 50%. Its big win situation for the consumer who can't pay the amount. The bank gains by realizing that it may be easier to get "something" out of the consumers than "nothing" when they are broke. I would say that's not a bad strategy.

I especially liked this quote from the article.

“Consumers have never been in a better position to negotiate a partial payment,” said Robert D. Manning, the author of “Credit Card Nation” and a longtime critic of the credit card industry. “It’s like that old movie ‘Rosalie Goes Shopping.’ When it’s $100,000 of debt, it’s your problem. When it’s a million dollars of debt, it’s the bank’s problem.”

With most governments coming in with bailout plans, I think this strategy will work as the governments might just indirectly be attending to the part of the debt that the consumer doesn't pay.

One thing is for sure, I want this crisis to move on quickly. Cant somebody just push the clocks a bit faster?