I was reading the other day that Americans owe almost $1 trillion on their credit cards, and that much of this debt was packaged by the banks and sold off to “investors”, just like the mortgage debt.
So when the defaults begin to escalate, we’re going to have another crisis on our hands. This thing just keeps growing.
They have already escalated to a point that nobody is talking about. These huge companies are gone! They have been recapitalized: Bear Stearns, Fannie Mae, Freddie Mac, Lehman Brothers, Merrill Lynch, Washington Mutual, etc.
Wachovia is about to go. National City. AMBAC Financal Group. And, I believe, eventually CitiGroup.
There is a rolling tide that is eating everything thown at it as an appetizer. It's worldwide, and I have no clue how they think they will stop it - without letting it have its vengeance.
I'm all ears for ideas...