We had the sub prime, then the credit crunch, according to some experts, the next bomb to explode in our face is the Credit Card Crisis. “Credit lines will continue to be reduced across the system, but the velocity at which it is already occurring and will continue to occur will result in unintended consequences for consumer confidence, spending and the overall economy. Lenders, regulators and politicians need to show thoughtful leadership now on this issue in order to derail what I believe will be at least a 57% contraction in credit-card lines.”
Add this to the already fragile US consumer spending along with its huge multiplier effect and you get the idea. This will be like rubbing salt to the fresh wounds that is Asia’ export driven economies. Actually a correction it would be akin to rubbing gunpowder and lighting it on fire truly decimating any hope of a rebound in demand.
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