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Why Credit Cards Matter So Much
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by snuffysmith | December 8, 2008 at 11:49 am
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Why Credit Cards Matter So Much
Yesterday put the nail in the coffin of a move from recession (small “r”) to Depression (capital “D). Two pieces of news that were absolutely essential came out - and no, neither one was that we’ve been in a recession since last year, or that last week’s stock market rally was yet another sucker rally. The first was the observation that McDonalds is now the second-largest merchant vendor on credit cards - that is, people are now buying their Big Macs on plastic - in part because they don’t have the cash. Credit card balances have risen enormously in the last few weeks, as people attempt to keep going through the holidays:
The second is the news that credit card companies are planning to pull 2 trillion dollars of personal and small business credit lines over the coming months, to reduce their risk:
More…
http://sharonastyk.com/2008/12/02/780/
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Most RecentMost Recommended Comments (1)
at 03:53 on December 9th, 2008
That is natural. So many people got discharged from work recently, and if they already have a credit card, it might be the only source of financial support. Of course, they increased credit card spending. those looking for credit cards now, however, are very unlikely to get one except if they have a really brilliant credit and promise a good risk for the lender.