In past few months the one new thats been daunting every one is the subprime crisis. Some financial gurus started predicting the next target of this crisis and few started pointing towards “Credit Card”. An average American household carries $8000 debt. In this economy there is high chances that some of them will turn out to be bad debt. Going a step ahead now we can see this crisis started bleeding in to student loans. Lenders has started evaluating the students credit reports. If this continues the students will have tough time ahead.
We can also see its effect on the US stock market since Jan 2008. Even though we see lot of things has changed negatively, the federal reserve is trying hard not to declare recession. Every one is worried that it will even worsen things. But I feel if we declare recession and accept things as it is today and move on then things may change. As long as we deny the fact the going will get tougher.