I just read Fortune magazine’s article on famed financial forecaster Meredith Whitney’s predictions on the future of credit, of which she says there will be little to go ’round.
To sum it up quickly, she says the new Credit CARD Act’s restrictions on card issuers — especially in regard to restrictions on instant interest rate increases — will, in effect, prevent banks from lending “en masse” like they had before.
Her conclusion: small businesses, the unbanked population and consumers who rely on credit cards to make ends meet will turn to predatory lenders and end up paying dearly in fees and interest rates.
But weren’t we already paying dearly for our debt?
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