Monday, June 30, 2008

Los Angeles CityBeat - House of Cards

Danny Schechter writes of the next "bubble" to burst toward Depression: [excerpt] “More and more sectors of the American economy recognize that their financial success is based on the success of the credit card industry,” explains Robert Manning, the author of the definitive Credit Card Nation and a leading expert who has been sounding the alarm about the consequences of credit card debt.

“Everything is very clearly thought out and premeditated. Whether it’s having conferences and think tank sessions about how to encourage people to accept more debt [or] to work with merchants – for example, to persuade merchants with empirical information that ... if they use a credit card that they’ll buy 20-25 percent more.”


Manning notes that saving and thrift was historically a positive value in the U.S. As recently as the l980s, the national savings rate was 10 to 11 percent. Since 2005, Americans have saved less than 1 percent of their disposable incomes. In fact, the most recent figures from March show that the savings rate is negative, below zero. ...

Los Angeles CityBeat - House of Cards

No comments: