Fed going one way and banks soon headed another?
Business Week:
Consumer Credit: Is a Crunch Coming?
Sat Aug 3,12:01 AM ET
By Peter Coy and Heather Timmons in New York, with Brian Grow in Atlanta, David Welch in Detroit, and Mike McNamee in Washington
Daily Briefing: NEWS ANALYSIS
Thank Amy Bell for helping keep the U.S. economy afloat. Bell, a 27-year-old benefits manager in Atlanta, bought a studio condominium with no money down, leased a Volkswagen Passat, and spent $2,300 on a set of living room furniture -- all in the past six months. "I have been going a bit crazy with the spending," she says.
That's for sure. Bell and plenty of other people are piling up huge debts. The amount that Americans owe on loans for houses, cars, credit cards, and other purchases adds up to nearly 100% of their annual income after taxes. That's up from 75% in 1992, after the last recession ended.
EASY MONEY
(cont)
story.news.yahoo.com |
