Signs : America reorganises credit- card business

(Glossary: subprime=dicey,tricky,unrepayable)


Around today US Federal Reserve — America`s Central Bank , like Reserve Bank of India– is expected to announce new norms for America`s banks/entities about handling of credit- card business. They will cover the whole range — client coverage, interest rates,credit risk coverage, default – recognition, public disclosures, etc. In plain english, make credit-card business more honest and transparent.

All nation`s central banks are famous for locking stable doors after the horses have bolted– our RBI does this very unctuously. America is no exception. Finance people have been warning of USA`s impending subprime credit cards for at least five years.What subprime housing loans have done to America/World financial system is by now known to everyone ,even the British queen(story of which, later). The size of subprime credit-cards bubble of America is much bigger than housing loans bubble.

Fed Reserve`s change of credit- card norms is the sign. The next bubble is about to burst.

(This blog will keep posting signs of our times , not just about finance but about all things that make up what is called life.Watch this space perhaps?)


About ctaposh

Cartoonist, poet, social activist, development banker, documentary filmmaker, reader of books and realities, ponderer of questions milling around.
This entry was posted in market- mythology, signs of times and tagged , , , , . Bookmark the permalink.

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