I`ve learned of a recent report from economist Peter Schiff that indicates that for the first time in decades, credit card companies cannot find debt buyers. You won`t hear this widely talked about on television. People do NOT want to hear this stuff.
For years credit card companies would extend credit to businesses and individuals, bundle them up and sell them off to investors, domestic and abroad. Places like China, Japan, Germany, etc.. A lot of this had to do with counting on a strong dollar.
just recently, these credit card companies/banks have found nobody willing to take on this debt.
Without buyers the card companies are left holding all of the risk and with the economy in trouble, these companies are faced with two choices-- tighten up, or shut it down. Some of you may have already felt this.
We were worried about the Mortgage bailout but that is just a small fraction of the bailout that would be required to cover credit debt. How much? Nobody seems to know the exact number, but it is in the hundreds of trillions of dollars!
A global recession could cause the credit industry to grind to a halt and it`s highly unlikely that any bailout package could keep this from happening.
I believe that we will still have a modest level of credit but it won`t resemble anything that we have become accustom to over the last 25 years. I remember a time when my parents got by with two credit cards... a Shell gas card, and Sears Department Store.
As I remember, those companies were so strict about issuing these cards that just having one of them indicated that you were likely to be a dependable payer....responsible/ worthy of credit. My, how times have changed.
How would you modify your current business or alter your your business plans if credit was to all but disappear?
JE Design Group, LLC
If all you do is what you`ve done, then all you`ll get is what you`ve got.