Just wondering if there has been any assessment of the potentially large Tsunami of credit card defaults that may be the next wave to hit the financial markets, considering the early impact of the sub-prime and Madoff washouts, with thousands already rendered jobless and thousands more likely to be in 2009.
By definition, lending institutions would be more diligent in conducting checks before giving a house loan as compared to giving a credit card. Also, credit card outstandings have absolutely no collaterals to back them up in case of default.
What if the thousands rendered jobless by the earlier waves start defaulting on their credit card bills, many of which may have swollen to scary proportions due to rolling credit arrangements?
Will that be another HUGE TSUNAMI hitting the US economy in 2009?
Am a lay-person voicing my concern and am eager to know views of experts who understand this better !
