November 25, 2008

Act II

My September 5 post highlighted the next shoe to drop in the ongoing financial meltdown drama – credit cards. Follow this link to read a banker’s account of what’s behind it, including minimal income verification by card issuers, and:

"The banks reel in the consumer, charge interest rates higher than those charged by the mob, increase lines without the consumer asking and without their consent, and lure them into overextending. And we can count on the banks to act surprised when they aren’t paid back."

Subprime mortgage lending, Part 2.

Some regulatory remedies are also offered for the government to consider in anticipation of a 2009 crunch in massive bank write-offs for consumer credit that never should have been offered.


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