Your credit may be shot but if you lose your house you can still keep your credit cards and build your credit back up. On the other hand maybe you cant. My brother-in-law who works in commercial lending tells me that banks are starting to pull reports on people and if the new credit picture looks negative they are reducing the line of credit or canceling the cards for fear that people that are going down the tubes will run their cards up as a last resort.
If people are using c-cards as a last resort it's an argument to reduce card rates to a more reasonable level. 18% - that's usury! Come to think of it c-cards aren't the last resort; the mafia offers competitive rates - certainly better than the department stores do.
The asian crisis was a result of massive credit card debt ( an other types) , that consumers couldnt pay... South Korea went from debt of $100 per person to $26000 per person in 10 years. Like subprime, banks were giving out credit cards to anyone with a pulse.
Shorting MA was one of my best trades last week. Made over $400 in less than an hour(good for a low roller like me anyway).......
Why would you short MA, they don't lend money, they are simply a processor & a network. MA and VISA are going nowhere, this is the digital age.