Credit crunch

It’s coming.  Big time. 

But I saw this back in 2002/2003 when UK had more credit card debt than the whole of europe.

Everyone had a loan, credit card or financing of some sort.  Changed from the 90s when it was difficult to get a mortgage. 

Now we’re seeing the ‘over-boost’ of using easy-borrow cash.  In fact the banks are borrowing at a higher rate than they’re lending out at.

Capitalism has to have these dips.  But this time I fear, US and UK have been using performance enhancing cocktails of lending to fire their economies up – combined with the Iraq bill, it’s something to be concerned about.