Raising the question about *their* 'financial instruments' -
are the obfuscations as dense as in the mortgage package 'instruments'?
as skillfully diffused to escape any responsibility?
Because you can't know how long credit card debt will last, or how much the debt will bring in interest, it would be very hard to turn into some sort of structured cash flow the way mortgage debt is/was. I'm sure the credit card companies have looked at it, but I have not heard of anybody trying it yet.
The real danger here is that rising rates of default mean that people are tapped out on debt. Which will result in consumer spending going down, just when economists are hoping the consumer spending will keep the economy going.
Jay