Home -> Law Blog Directory -> Criminal Law Blogs -> Crime & Federalism

Criminal Law

: Crime & Federalism

Credit Card Debt Securitization

Subprime mortgages were converted to mortgage securitization.  Anyone who has followed the issue knows that much.  (Here's a primer if you need one.)  Here is something few have mentioned: Other debt was securitized, too.People would tap into their homes for equity.  People would use the equity to pay off credit card debts. With the real estate market down, people no longer have equity to tap into.  So what's going to happen to credit card balances?  They aren't going to get paid, of course.Which means banks will be facing additional problems very soon.  United States Consumers have almost one trillion in credit card debt ($962 billion was the latest number; data).  And 2.57 trillion in total consumer debt.What will happen when consumers stop paying their debts? That the government and most of the so-called "experts" aren't even addressing this issue yet just proves that trusting those in authority is foolish...continue to full post

Full post as published by Crime & Federalism on November 22, 2008 (boomark / email).