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March 10th, 2009 
admin Meredith Whitney – CEO of Meredith Whitney Advisory Group, LLC – has an important and sobering opinion piece in today’s (March 10) Wall Street Journal.
In “Credit Cards Are the Next Credit Crunch,” Whitney notes, “Currently, there are roughly $5 trillion in credit-card lines outstanding in the U.S., and a little more than $800 billion are currently drawn upon.” She projected six months ago that some $2 trillion in credit card lines would be reeled in by the close of 2010, but now projects that to reach $2.7 trillion.
Whitney discusses various factors in play here, including FICO score issues and home prices.
On the policy front, she observes:
Along with many important and necessary mandates regarding fairness to consumers, impending changes to Unfair and Deceptive Acts or Practices (UDAP) regulations risk the very real unintended consequence of cutting off vast amounts of credit to consumers.
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