Ok, we should have seen it coming, now look out for the next wave, we can see it coming.
What is the next crisis? For sure the next financial crunch is Credit cards. We are faced with bad economic times and the coming holiday season. As the holidays approach we are seeing slow retail sales and people are maxed or near maxed on credit cards. Now with the holidays and people are low on cash, they will slow down buying and what they do buy will be on credit, hoping for a shift in the economy. With the slow sales of the holidays, businesses will face even harder economic times and they will cut back and again jobs will be lost and then people will not be able to pay the mortgage and credit cards. Credit card companies will hit the accounts with 1. huge late fees, 2. Lower credit limits, 3. increased interest rates, there by shooting themselves in the foot like mortgage did and defaults will be massive.
And there it is a new crisis!
Advise to all the people, pay your mortgage and taxes first, then auto loans, keep your house and cars, and remember, credit cards can destroy your credit rating, but those are un-secured loans, they can harass you but they cannot take your home and car. They will threaten but reality is, they can do little other than that. Then with enough of that, they to will be expecting a bail out at our expense.
Pray for our country, things will get better but it will take some time and pain.
Pete Stanley
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