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Reply #16: No. Conventional credit will become cheaper. Perversely, the higher rates [View All]

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mbperrin Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Mar-24-09 02:45 PM
Response to Reply #13
16. No. Conventional credit will become cheaper. Perversely, the higher rates
are encouraging lenders to emphasize the far riskier cards than less risky and less profitable (but still profitable) conventional loans. By narrowing the return and increasing the risk of lending via credit card, the available pool of funds will increase for conventional lending.

Struggling households don't need more leveraged money. They need to increase income or decrease expenses. The stalling tactic of amortizing current expenses is one of the reasons for the current meltdown.
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