They certainly aren't loaning it out!
Also see: Fed Gives Banks $75 More Billion
"Banks trim consumer credit lines" by New York Times News Service | June 21, 2008
The easy money that led Americans to depend on credit cards to pay their bills is starting to dry up. After fostering the explosive growth of consumer debt in recent years, financial companies are reducing the credit limits on cards held by millions of Americans, often without warning.
Then why act like my friend when I call?
Banks that issue cards like Visa and MasterCard, as well as the American Express Co., are cutting the limits for customers who have run up big debts, live in areas that have been hit hard by the housing crisis, or work for themselves in troubled industries.
Credit card lenders are also culling their accounts ahead of new rules that are intended to benefit consumers but could limit the profits on customers deemed bigger risks.
What it is ALL ABOUT -- PROFITS!!!!
That's why you getting the ass-fucking, 'murka!
While consumer spending, the nation's economic engine, has been surprisingly resilient of late, a more sweeping reduction in credit card limits could pose serious challenges for hard-pressed consumers and, in turn, the broader economy.
Banks and mortgage companies are required by law to notify customers within three days of changing the limits on a home equity line of credit, and many have been aggressively lowering them. But credit card lenders have 30 days to notify their customers, and often do so only after taking action. Such moves can cause a consumer's credit score to drop, leading to higher interest rates and making it harder to get new loans.Where did that $300 BILLION go?
The reductions come as consumers, squeezed by a slack economy, a weak housing market, and rising unemployment, are falling behind on monthly credit card payments in growing numbers. Many Americans have come to rely on credit cards to cover everyday expenses like groceries, gasoline, and medical bills, in addition to big-ticket items and luxuries."
Yeah, THANKS for SUCKING US DRY, you FUCKING VAMPIRES!!!!
Better get to work, America (snip, snip)!!!!
:-)
