A new report says that against the backdrop of record-high numbers of home foreclosures, lenders are tightening mortgage lending standards, making it harder for families to maintain their consumption in the face of weakening income growth.
In its paper “House of Cards,” the Center for American Progress finds that credit card issuers present their all-too-convenient lending product as a much needed but inevitably dangerous pressure valve for cash-strapped borrowers.
This could mean trouble for financial markets and could add additional turmoil to the economy as more consumers file for bankruptcy, driving down the value of securitized credit card receivables.
More information at http://www.americanprogress.org/issues/2008/02/house_of_cards.html
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