twhite113

U.S. Credit Card Industry Moving into Uncharted Territory

If banks, or the federal government for that matter, have to sustain higher losses on creditcard defaults, they will inevitably have to pass some of that on to MA and V in some form or another (i.e. lower transaction fees) and/or they will issue cards with higher interest rates, or even require fees to the consumer for their use. Any of that will be a detriment to V and MA's profitablity. Then there is the fact that consumer spending will likely contract with gas prices going ever higher.

disclosure: short V