Linda Financial

As the real estate sector itself is concerned, the losses caused by market turmoil of U.S. subprime mortgages, would exceed one trillion dollars. This is estimated by most market analysts on the cost of the party held in the mortgage market. Fiesta which had the high-profile guests, the main international financial institutions. A party where security responsibility to maintain order and prevent excesses (ie oversight bodies), turned a blind eye.

While much of the direct losses from the crisis are internalized by the global financial system, it remains to know what can happen with other types of debt that was engine of U.S. consumption in recent years and, as I anticipated in the story of Tim and Linda, is linked to credit cards. The global debt financing through credit cards in the U.S., is estimated at around one trillion dollars. According to the latest data released by the ratings agency Moody's realize that the rate of default in payment cards grew 30% in the last 12 months. To get an idea of the level of indebtedness of American families in this segment, according to Fed data, the average debt per capita is U.S. $ 10,000.

I do not want to imagine what might happen to the U.S. economy if the credit card market erupt. Already, assuming it does not happen a worsening of the crisis through an increase in arrears in the payment of credit cards, prospects for the U.S. economy for the coming months remain dark. The financial system is not able to attend the real economy and that the losses had to assume the financial institutions have capitalized and managed to collect money that has failed to cover losses in its entirety, so that they do not have much power to generate new funding.