Credit Card Bond Spreads Reach Record Over Benchmarks

Silly Americans, you cannot prosper while drowning in debt. Oh wait... there is always bankruptcy. Go ahead, spend away and let the investor eat the loss. They can spin it as write down and charge new borrowers a higher interest rate. Besides, you don't need good credit if everyone defaults at the same time. You credit score will still be relatively good.

I was taken back slightly as I read the following lines. Consumer debt is $2.59 trillion. That is about 1/3 of the national deficit. Without doing the calculation, I estimate that is roughly $10,ooo in debt for every man woman and child in this country. It would be interesting to find the per capita income and then derive the percentage of income paid out in interests each year. It kind of seems like share cropping all over again. History repeats itself in mysterious ways.


U.S. consumers borrowed more than twice as much as economists forecast in June. Consumer credit rose by $14.3 billion, the most since November, to $2.59 trillion, according to the Federal Reserve.

http://bloomberg.com/apps/news?pid=20601087&sid=a2qvrELyaqmA&refer=home