To give an insight into what is going to happen is shown by a statistic released today in the UK. The approvals for new mortgage business last month, is at 2% of the same value it was just 1 year ago at just £143 million. There has been a drop of 98% in the value on new mortgage loan approvals in the space of just 1 year.
http://news.bbc.co.uk/1/hi/business/7641535.stmhttp://www.wsws.org/articles/2004/jan2004/debt-j15.shtml a report dating back from 2004.
June 1993 - US Consumer debt = $825.9 Billion
June 2008 - US Consumer debt = $2.587 Trillion = around $24,000 /household
The consumer debt graph has been essentially an exponential graph since the end of the second world war.
The unsecured consumer debt bubble has yet to burst. The credit card debt bubble is unsecured meaning that it is based on no real fixed assets. If you think sub-prime was scary then you haven't seen nothing yet.
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