Now that subprime plastic can’t be “refinanced” with another card or paid off with home equity, credit card defaults are beginning to spike. On the bright side, there was no federally-sponsored rent-seeking megacorporation encouraging every warm body to have six credit cards. On the not-so-bright side, there’s $950B in debt outstanding and banks are hoarding this “cash” stuff, which I’m told is fairly significant in a liquidity crisis.
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