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Credit is drying up everywhere. Banks are now concerned (finally), about rising credit card debt. They have every reason to be. The bankruptcy reform act of 2005, which encouraged such reckless lending is now blowing up in lenders' faces.
Banks and credit card companies wrote that bill.
Regardless of what the law says, unemployed people are not going to be paying credit card bills. A second point is that someone unemployed, with no income, will meet the strict guidelines for wiping away all their debt.
Banks have finally beginning to get the bleak message that credit card defaults are going to soar. In response, Banks are Trimming Limits for Many on Credit Cards .
The easy money that led Americans to depend on credit cards to pay their bills is starting to dry up.
Originally posted by DimensionalDetective
I wonder how soon till the fraudulent fed comes to the rescue of the CC companies and gives them billions more of their worthless dollars to bail them out?
I have a question: when a bank/credit card company issues credit with payment protection insurance (issued by the same bank or a subsidiary company) which is paid through the given credit, has the bank created "real" money from "fake" money? I wager it has.