Reply #29: I think they are out of money

[Alcibiades]

A couple of replies have indicated similarly arbitrary reasons for lowering credit lines. The story below claims credit card companies are going to tighten credit by $2 trillion. How do they do that? Bullshit and arbitrary withdrawals of credit lines is one way.

Could it be that, much like Wall Street and other financial entities, they don't think they have enough cash on hand to weather the storm? If they expect the recently jobless to borrow more money they may not be able to repay later, maybe they will target areas of high job loss for tightening to minimize their losses. It's what I'd expect from them.

http://www.csnews.com/csn/news/article_display.jsp?vnu_content_id=1003918283