Quote from S2007S:
2005-2007 was talk about the housing bubble, now moving ahead we are entering the next bubble, CREDIT CARD DEBT, ignore it as much as you may, but this is the next bubble thats about to go. The numbers are staggering, without people taking money out against their big piggy banks they are moving toward plastic. This is going to lead to consumer spending slow down as credit card deliquencies start to rise. There will be a slowdown in consumer spending that will lead to slower GDP growth bringing about the next recession.
Consumer Borrowing Up in Wake of Housing Decline
Published: December 10, 2007
Washington--Consumer credit use increased in October, raising the borrowing rate faster than in the month before, the Federal Reserve reports.
Consumer credit grew at an annual rate of 2.3 percent in October, compared to a 1.6 percent growth rate for September, the Associated Press reports.
Revolving credit, which incorporates credit card debt, grew at an 8.3 percent rate in October after increasing 6 percent in September. In August, revolving credit escalated at an 10.6 percent rate.
In October, overall consumer credit was up by $4.7 billion-- hitting a new high of $2.49 trillion. Consumer credit rose $3.2 billion in September.
Credit card debt has been on the upswing this fall as home refinancings slowed and consumers began using their credit cards more frequently.
