Chicken Little

From ExecutiveSuite.blogs.nytimes: The Worst Is Yet To Come: Anonymous Banker Weighs In On The Coming Credit Card Debacle

One hears a lot of such glooming and dooming. While there is no shortage of good reasons to be pessimistic, I am skeptical that this is really one of them.

Historically (and for good reason!), up until the past few years, mortgages were not generally offered to people who had little chance of paying them back. The mortgage security markets were, in some sense, unprepared to deal with these sort of borrowers. Credit Card debt, on the other hand, has long been offered to people who have little chance of paying it back.