The Next Credit Crunch

In a recent interview between renowned financial guru Meredith Whitney formerly chief financial analyst for Oppenheimer, and Americas richest man Warren Buffet, Meredith laid down the gauntlet with her latest prediction in Whitney's sector of expertise, the credit market, and the picture is not a good one. She claims that lines of credit will be cut by two trillion this year and will top out at two and a half trillion by the end of 2010. Since lines of credit are the LIFE BLOOD of the majority of Americans, this would retard the ability for a timely economic recovery as the one promised by this administration. The major players in this sector are JP. Morgan Chase (JPM), Bank of America (BAC), Citigroup (C), Capital One (COF), America Express (AXP). Another subject she did not discuss rate jacking. In the small print on credit card companies contracts they retain the right to elevate your interest rate to as much as thirty percent if you are just one day late. Whats worse is that the other card companies retain the right even if its another companies card you are late on, and they all report to one another. This could be the proverbial straw that broke the camels back if shes right.