Senior Consumer Reporter, SmartMoney.com
Senior consumer reporter at SmartMoney.com
PROFILE
Kelli Grant
Guest
FROM Kelli Grant
Which Way, L.A.?
Holiday Shopping, China and Economic Recovery Consumer spending accounts for 70 percent of the US economy, so the holiday shopping season is an important measure of economic recovery. This year, it started early, and the big question is, how long will it last?
To the Point
Consumer Spending and Economic Recovery Consumer spending is 70 percent of the US economy, so what did Black Friday and Cyber Monday reveal about this year's holiday season? The 90 percent who are still employed are beginning to spend again. If Americans spent their way into the Great Recession, can we spend our way out of it?
To the Point
As Interest Rates Tumble, Credit Card Rates Climb Interest rates for the US Treasury, business firms and home-buyers are going down but, despite new regulations, the rates for credit card borrowing are going up. New laws limit banks’ ability to increase rates on people who get behind on their credit cards. Credit card companies have responded by increasing rates on everybody.
To the Point
The Credit Card Economy Comes Home to Roost Credit card companies offered high limits and low interest rates to millions of US consumers. Then came the Great Recession. When we first broadcast this program in March, companies were reducing credit lines, jacking up rates and closing accounts — and they're still at it.
Which Way, L.A.?
The Credit Card Economy Comes Home to Roost The credit card industry has extended $5 trillion in available credit.” So far, only $800 billion is currently owed. But, as more and more people look to credit cards as a way to coping in tough times, “easy credit” is becoming a thing of the past. What happens when an industry that extends “easy credit” in good times has to contract?
To the Point
The Credit Card Economy Comes Home to Roost Credit card companies made big money by extending balances and reducing interest rates to millions of US consumers. But times have changed. Now, when other businesses are desperate for customers, credit card companies are reducing credit lines, jacking up rates and even closing accounts.
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