DISQUS

Houndentenor · 6 months ago

The credit card crisis is going to dwarf the mortgage crisis. At least mortgages had collateral to back them up. At inflated prices but in the end a repossessed house does or at least will have some value. Credit card debt is unsecured. There is not much the banks can do to recoup losses when people start defaulting. But I have no sympathy for the banks since many of them are charging rates higher than you used to get from loan sharks. People used to go to jail for charging 30% interest. I also have friends with open lines of credit equal to more than a year's salary. That's insanity. The banks brought this on themselves but once again, they will take the whole economy down with them. Deregulation would be a good thing in a market economy not run by greedy morons.