Frank Rong1

'Panics Do Not Destroy Capital'

Credit card underwriting is based on the ability to pay, sumprime, no underwriting standards. credit card- high barriers to entry. Mortgage lending - no barriers to entry.

Mortgage messes are expected. rising home prices made homebuilders rish, then they build more until we had too much inventory, then the bottom felt out.

Credit card business are entirely different. few large rational players. During last two recessions, profits in industry did not get affected.

Your linear thinking is absurds