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Is Credit Card Debt the Next Financial Disaster?

With the economic downturn, rising unemployment, decline in house prices, and limited ability for consumers to continue using their homes as an ATM; credit card debt is poised to be the next disaster in the financial sector with bearish outlooks for credit lenders Capital One (COF), Discover (DFS), and American Express (AXP). Credit card processors such as Visa (V) and MasterCard (MA) have also declined with the overall market, but are leveraged to the volume of transactions with debit and credit cards rather than

The Economist has a great piece out about how the overleveraged American Consumer of recent memory is going to quietly take a backseat to the saving-oriented consumer of decades past. Why? Well, because they will have to. The recession obviously has a negative impact on spending power and we've written numerous times about this current/upcoming phenomenon.

1. The decline in housing prices and the increase in the unemployment rate will obviously have a negative effect on the economy and in turn the consumer. Visa's (V) consumer trends have already started to show this.
2. As these consum

The Economist has a great piece out about how the overleveraged American Consumer of recent memory is going to quietly take a backseat to the saving-oriented consumer of decades past. Why? Well, because they will have to. The recession obviously has a negative impact on spending power and we've written numerous times about this current/upcoming phenomenon.

1. The decline in housing prices and the increase in the unemployment rate will obviously have a negative effect on the economy and in turn the consumer. Visa's (V) consumer trends have already started to show this.
2. As these consum