There can be expectations that credit card debt will become the next big financial time-bomb to explode if the overall economy worsens.
As was mentioned, MA does not carry debt, but they were downgraded recently by S&P to a "Hold", which in a bear market seems to be a kiss of death :eek: Also, MA was certain to test new lows Friday once the bailout plan fell apart Thursday, because a free-flowing credit market is crucial to its success. MA is a fundamentally sound company with expanding overseas markets as wireless transactions become more and more global. They'll likely range around for a while though, before moving significantly above $200 again
but the fact that ma in in debted too by its customers makes it just like any loan. except thats its usually smaller amounts than a mortgage
? they cannot lose money on any transaction. they are not guaranteeing that the customer pays (is verifone a competitor of theirs?)
zdreg ofcourse they can lose money, any customer who is piled up high in debt can walk away if they don't give a shit about their credit