Killer Credit

In These Times by Adam Doster | Jan. 29, 2008 (Special Report)
Attack of the $915 billion consumer debt monster

Like mortgages, credit card debt is often carved up and sold on global debt markets as securities. Since borrowers generally pay back what they owe, that debt has been profitable and safe for traders, which explains the $40 billion increase in securitized credit card debt from September 2005 to 2006.
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These developments are problematic because credit card debt is unsecured, meaning no portion of defaults can be salvaged. Yet broader dangers ... Full Story »

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2.9
 by Tish Grier - Jan. 29, 2008

An important topic but the story is not well-balanced. The statement "If credit cards are a trap, why don’t people abandon them entirely? Because, experts say, people must have their basic needs met, which credit cards make possible." made me wonder and think that something was not right with the overall aim and intention of the story. The term "economic shock" used by the expert who forwards the necessities viewpoint is never fully explained. What does he mean by "economic shock"? Yes, there is no doubt there is a problem with credit and the system that has allowed usury interest rates that would make a loan shark blush, but this piece veers far too much into hysteria and lacks balance.

(13 answers)

Tish's Rating

Overall
2.9

Average
from 13 answers
Quality
2.8
Facts
3.0
Fairness
2.0
Information
3.0
Sourcing
3.0
Style
3.0
Accuracy
3.0
Balance
2.0
Context
3.0
Popularity
3.5
Recommendation
4.0
Credibility
3.0
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