From the Baltimore Sun comes this interesting tidbit about credit card debt and how banks have eased their lending standards to be able to grab a bigger share of the credit card market, which the article says is “banker-ese for “making lots of loans that won’t get paid back.””:
After every financial crisis over the past 10 years, the Federal Reserve has cut interest rates and pumped money into the economy. Each rescue solved the problem – and created a new one. The next bomb from this chain reaction of bailouts and blowups will be credit-card debt. Hardly anybody is talking about it yet, but banks and consumers are laying the ground for a wave of credit-card defaults, bankruptcies and asset write-offs for 2009 or so.
So with 1 in 10 people already headed into foreclosure on their houses, are credit cards the next big wave in “Sorry, I cannot pay you back”?