State of the Economy – March 2009Posted: March 13, 2009
I asked last fall: “What about credit cards? Don’t hey pose a risk?” Well this week a banking executive said in an interview that banks would get hit by credit card defaults in 2009. Now the question is how fast were the banks to cut down on lines of consumer credit and were they able to contain the risk at a manageable level or will they be asking the government for bailout money to cover losses again? These 0% first 12 months lines of credit were issued in 2008. Now what is the irony of that? If it didn’t work with mortgages, then lets try it on a more massive scale with credit cards!!!!
Gee golly Mr. Rogers… that sounds like a great plan!