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You're right. Only about half of credit card debt is securitized, while about 90% of mortgage debt was. However, the banks are in much, much more fragile cond
by quoderat 18y ago
You're right. Only about half of credit card debt is securitized, while about 90% of mortgage debt was.
However, the banks are in much, much more fragile condition than they were before, and this will have a disproportionate impact right now.
While it's not the end of the world, it's another thing piled on a whole heap of bad things.
It'd be a mistake to underestimate the impact of this, just as we've as a society so far made mistake after mistake in underestimating how bad this financial crisis would prove to be.
- fauigerzigerk 18y agoI completely agree about the compounding effect of the credit card problem and I'm really far from being optimistic about the financial crisis. I think this has a long way to go. If banks get deeper into trouble and smaller countries have to rescue them, eventually people will ask whether those countries are going to default and who gets hit by that and so on.