JLP from All Financial Matters made a great insight about the next financial bubble we face in the United States.
Much like sub prime mortgages are packaged together and sold to large financial institutions to earn from the interest of the borrowers, credit card debt is also packaged together and sold off to larger financial institutions to reap the benefits of the hefty interest rates that borrowers pay. if you think that unscrupulous lending practices were taking place in the sub prime mortgage sector, you don’t even want to know about the credit card lenders. Credit card lenders send applications to ANYONE and EVERYONE. Dead people, dogs, people with zero money to their name, children, and any other social security number they can get their hands on. Credit card companies have spent the last thirty years literally trying to financially drive this country into the ground. We’ve seen the statistics of $600 billion dollars of credit card debt in this country, and it is no joke. This is a bubble waiting to happen.