Time Magazine reports on plans to bailout credit card issuers: "Treasury Secretary Henry Paulson's latest plan for the $700 billion bailout fund has many economists responding like Seinfeld's Soup Nazi, "Next!" They say the idea of using funds approved by Congress in early October to stimulate credit card and auto lending is ill advised and unnecessary."
"'I don't think providing more leverage to consumers is best for our economy in the long-term,' says Adam Lerrick, who is a visiting scholar the conservative-leaning Washington-based think tank American Enterprise Institute. 'The consensus is that consumers have borrowed too much over the past 10 years, so I don't get why putting them further into debt is the answer.'"
"What's more, industry watchers say credit card and auto lending has actually held up quite well despite the credit crunch. According to market research firm Synovate, the average consumer probably has a higher limit and therefore can spend more on their credit card than they could a year ago. "
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment