Is this a sign that the economy is still going strong? Is it a sign that people just don’t care and are using up every last drop of credit they have?
That could be it. I saw on the news yesterday that consumer credit card usage was surging. I’ve made the analogy before that its almost midnight and everyone is making a run on the punchbowl before the last of the kool-aid is gone.
I mean, heck, if you are planning on filing bankruptcy anyway, might as well go out with a bang!
Anyways, there are still a few shoes left to drop before I’ll have confidence in our economy.
One, the bond insurers go under and the banks have to unload their REO’s for whatever the market will bear. Over-leveraged banks will go under as well.
Two, the era of cheap credit has to come to an end.
