"Slicing and Dicing"
"Cutting And Carving"
"Reducing And Evaporating"
Ahhh the soothing words of Clyde "The Glide" Frazier is the only reason to watch the Knicks on MSG the last 7 years or so.
But know there is a new meaning for the words "Slicing And Dicing". Credit Limits.
Banks and credit card companies are cutting credit limits and in many cases outright closing 0 balance revolving credit cards. So far there has been some $700 Billion in lost credit limits to US Consumers. That in itself is almost bigger then TARP and the first Obama Stimulus.
Credit Limit reductions are in the 3rd or 4Th innings. Some $2.7 Trillion in Limits will be cut and eliminated. Americans live off of credit, so long after the recession ends, we will have major problems with consumers getting. back on their feet.
With CIT group soon filing for some sort of bankruptcy or restructuring, small business's wont get financing, commercial real estate leases wont get signed, and business's wont get going.
Get ready for the mother of all jobless/credit recoveries.
I agree with you that long after the recession is over consumers will feel the pain...its supply side theory all over again...this has never worked in the past except for the ones at the top of the food chain.
ReplyDeleteIts Pure Trickle Down Theory that trickles no where but up.
ReplyDeleteThanks for the Comment.