credit-card lines to decline by 45 percent
Posted by ecoshift on December 1, 2008
Credit-card industry may cut $2 trillion lines: analyst | Reuters.com
Mon Dec 1, 2008 4:06pm EST
(Reuters) – The U.S. credit-card industry may pull back well over $2 trillion of lines over the next 18 months due to risk aversion and regulatory changes, leading to sharp declines in consumer spending, prominent banking analyst Meredith Whitney said.
The credit card is the second key source of consumer liquidity, the first being jobs, the Oppenheimer & Co analyst noted.
“In other words, we expect available consumer liquidity in the form of credit-card lines to decline by 45 percent.”