Posted
12/01/2008 06:34:00 PM
by Douglas
The next shoe in this dismal economic landscape is about
to drop.The U.S. credit-card industry may pull back well over $2 trillion of lines over the next 18 months due to risk aversion and regulatory changes, leading to sharp declines in consumer spending, prominent banking analyst Meredith Whitney said.
The credit card is the second key source of consumer liquidity, the first being jobs, the Oppenheimer & Co analyst noted.
"In other words, we expect available consumer liquidity in the form of credit-card lines to decline by 45 percent."
It's bad news when all the credit markets are drying up like scorpion's ass, but if it means I'm going to get less credit card applications in the mail featuring stupid and misleading gimmicks, that's just fine by
me.Labels: Credit Card Collapse