Robert Reich

Party that had as prominent guests, to major international financial institutions. A party where the Security responsible for maintaining the order and avoid excesses (that is, the supervisory bodies), turned a blind eye. While much of the direct losses from the crisis are internalized by the global financial system, still subtraction know what might happen with other types of debt that was engine of American consumption in recent years, and how anticipated them in the story of Tim and Linda, is linked to credit cards. The global debt for financing through U.S. credit cards.UU., is estimated at around one billion dollars. According to the latest data released by the rating agency Moody s realize that the rate of default on payment cards grew by 30% in the past 12 months.

To give an idea of the level of indebtedness of American families in this segment, according to the Fed data, the average debt per capita is US $10,000. I cannot imagine what might happen to the U.S. economy if the credit card market to explode. Already by Yes, assuming that not reaching occur a worsening crisis through an increase in the arrears in payment of credit cards, the prospects of the U.S. economy for the coming months remain dark. The financial system has no capacity to attend the real economy already that the losses that they had to assume the financial entities have descapitalizado them and fresh money that managed to raise did not cover losses in its entirety, so they don’t have much power to generate new financing. The situation in the American credit card market not far from the reflected by the market subprime novels. Robert Reich, former Secretary of work and current Professor at the University of Berkeley reflects very clearly on his page what is happening: for years, the banks and credit card companies have sent us more attractive offerings.