Experts Say Recession Looms around the Corner

Posted by: Desiree B. | Jan 16,2008

The implosion of subprime mortgages will soon result in a recession, experts warn. Two large U.S. banks, Wells Fargo & Co. and JP Morgan Chase & Co., say we’re on the brink of a lending crisis. Pair the problems related to subprime mortgages with Americans who are defaulting on loans and we may be headed for a recession.

 

A recession is when we have a considerable decline in economic activity throughout the country that lasts for several months or more. Faced with people who aren’t paying their credit card debt, car and home loan payments and other debts, lenders are reporting huge losses- in the billions.

 

What does that mean for me and you? Well, it’s entirely possible that in the near future it may be harder than ever to get approved for a home loan, a car loan, or credit cards. Lenders will have to do some belt tightening to avoid additional losses from unpaid credit card debt and loans as best they can. 

 

Other signs of the recession include a failing stock market. Since the beginning of the New Year, you’ve probably noticed that your 401(k), IRA or other investment vehicles have tanked due to poor stock market performance. In addition, the dollar is reported to be at its weakest in years, and oil barrel prices continue to spike.

 

If we start getting turned down for credit cards and loans, we’ll stop spending, too. And even more jobs will be lost. And let’s not forget about the high unemployment rate… my only question about the recession is this: hasn’t it already started?

 

Consolidate your credit card debt and make it easier to pay off with a debt consolidation loan. 

Sponsored Resources Ads by Google