A very good article I came across. Thought maybe others would enjoy reading it as well.
http://articles.moneycentral.msn.com/Banking/CreditCardSmarts/the-next-meltdown-credit-cards.aspx
Borrowers falling behind on their payments. Defaults rising. Huge swaths of loans souring. Investors getting burned. But forget the now-familiar tales of mortgages gone bad. The next horror for beaten-down financial companies is the $950 billion worth of outstanding credit card debt -- much of it toxic. That's bad news for players such as JPMorgan Chase and Bank of America that have largely sidestepped -- and even benefited from -- the mortgage mess but have major credit card operations. They're hardly alone. The consumer-debt bomb is already beginning to spray shrapnel throughout the financial markets, further weakening the U.S. economy. "The next meltdown will be in credit cards," says Gregory Larkin, a senior analyst at research firm Innovest Strategic Value Advisors.
Message Edited by ngerasimatos on 10-28-2008 04:02 PM
Try not to become a man of success but rather to become a man of value
Albert Einstein 1879 - 1955
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