Released: October 29, 2008

Consumers feel the next crisis: it’s credit cards

Source: Eric Dash, NY Times (Free Registration)

First came the mortgage crisis. Now comes the credit card crisis.

After years of flooding Americans with credit card offers and sky-high credit lines, lenders are sharply curtailing both, just as an eroding economy squeezes consumers.

The pullback is affecting even creditworthy consumers and threatens an already beleaguered banking industry with another wave of heavy losses after an era in which it reaped near record gains from the business of easy credit that it helped create. 

Read Full Article: Consumers feel the next crisis: it’s credit cards