The Next Crisis: Credit Card Debt

The financial crisis is far from over.  After this US$700 Billion bail out comes another potential disaster with Americans spending far more than they can afford by using credit cards.  Industry analysts are pegging the bailout, if there needs to be one, at US$950 Billion!

The only good news, it seems, is that oil has finally come down to reasonable levels again- hitting US$78 per barrel, slicing down to almost 50% of its high just a month ago.  Some people think this spells bad news, that the economy is taking a turn for the worse and so investments are being pulled out.

My personal opinion is that oil shouldn’t have gone up so high in the first place.  There was no demand for it to surge to the prices it did- it was all speculation in the markets.

When will we see the end of this?  Should be soon as this latest round of bad debt potentially blowing up in America’s face seems far-fetched.  There’s a very big difference between not being able to afford to pay your mortgage and not being able to pay your credit card bill.

At the same time, its a wake up call for America that is on the magnitude of 9/11.  America’s decline is almost cemented in the stars already.  Just like the UK’s superiority waning at the turn of the 20th century, so is America’s shining beacon of light is coming to an end this 21st century.