Krugman fears the credit binge might be over:

So far, it’s been really hard to see any credit crunch on Main Street, as opposed to Wall Street: consumer and business borrowing has continued to grow steadily. But a closer look shows that consumer credit has shifted toward revolving loans i.e., credit cards. Loosely, people haven’t been able to borrow against their houses, so they’ve hit the plastic.

And now, early warnings that credit card rates and limits are being hit.

The idea that people should live within their means is such a retro position, isn't it?

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