Credit card losses will go up next year, say the people who follow such things.
Credit card companies have set aside money to cover losses, but it will not be enough.
This is the prediction of Kurt OKeefe, Michigan consumer attorney, not necessarily that of all the “experts”.
These experts are from the same outfits that approved the sub-prime mortgage securities for public consumption.
Economic experts, the “talking heads” on all the TV shows, united in telling us last summer that the sub-prime mortgage market was relatively small, even if it collapsed, it would not have that much effect on the economy. We know what happened.
The credit card securities market has yet to collapse, but it has been structured much the same way as the mortgage market.
And has no fears about asking for a taxpayer backed bailout, just like their cousins in the mortgage security industry.
As with the bank bailout, I take the same position as Florida bankruptcy attorney Carmen Dellutri, which is NO.
Our government has already created the expectation that if you are a big enough company that is failing, you will be rescued with taxpayer money.
Instead of us bailing out the big boys who messed up big time, let’s reform Chapter 13 bankruptcy law to help consumers, as proposed by another Florida bankruptcy attorney Chip Parker.
