Apparently we've been in a recession for a year (no surprise there, really). And the DJI is off 428 points (the only surprise there is why the market took off last week; the big Citi bailout was a sign of continuing failure, not a reason to celebrate). Then this:
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."
No comments:
Post a Comment