(Fortune Magazine) -- We made it through the bursting of the Internet bubble and now the bursting of the real estate bubble. Next we may be approaching the end of the most worrisome bubble of all: the standard-of-living bubble.
That conclusion comes from the latest data on credit card debt. It's growing fast, but the problem is bigger than that - and to understand what it means, we have to take a few steps back.
2 comments:
American's have a hard time excepting economic downturn and it makes senese that so few are willing to curb their spending and reduce consumption when so much credit is avaliable.
Maybe its just me, but this article seems to be one of those "scare consumers into acting right" articles. It mentions credit card debt has gone up over the last two quarters of last year. Great. That doesn't necessarily mean that people are dying from credit card debt and are unable to manage their payments, etc. It mentions the effect on securitized credit card debt also, but I'm sure that buying and selling of credit card debt securities went on well before last year. While it may be a somewhat increasing problem, I feel like the credit card companies aren't ruining anybodys life any more than they have been in recent years.
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