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Credit Card Companies reducing your credit to help inch us to
The GREAT DEPRESSION
The
Coming Depression
Tuesday, Dec 02, 2008
Comments-I know the housing industry has nothing
to do with credit cards but please view the Japanese housing graph.
This looks like what will be coming to North American markets!
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 or credit-card lines to decline by 45 percent."
(ARTICLE CONTINUES BELOW)
Bank of America Corp, Citigroup Inc and JPMorgan Chase &
Co represent over half of the estimated U.S. card outstandings
as of September 30, and each company has discussed reducing card
exposure or slowing growth, Whitney said.
A consolidated U.S. lending market that is pulling back on credit
is also posing a risk to the overall consumer liquidity, Whitney
said.
Mortgages and credit cards are now dominated by five players
who are all pulling back liquidity, making reductions in consumer
liquidity seem unavoidable, she said.
"...We are now beginning to see evidence of broad-based
declines in overall consumer liquidity."
"In a country that offers hundreds of cereal and soda pop
choices, the banking industry has become one that offers very
few choices," Whitney wrote in a note dated November 30.
She also said credit lines to consumers through home equity and
credit cards had been cut back from the second-quarter levels.
"Pulling credit when job losses are increasing by over 50
percent year-over-year in most key states is a dangerous and unprecedented
combination, in our view," the analyst said.
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INFOWARS:
BECAUSE THERE'S A WAR ON FOR YOUR MIND
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