Economic decline in a culture of credit
The average household owes credit card companies $8,500. Will that be the next bubble to burst? Will consumers change their behavior to meet the challenges of a troubled economy?
There may be fewer paper towels in the package than there used to be, but you’re still paying the same price. The same is true for dog food and trash bags. "Hidden inflation" in supermarkets is just one sign of how consumers are affected by a troubled economy, even though they don’t notice.
Bear-Stearns brokerage house was bought up before it collapsed, as was the sub-prime lender Countrywide. Now the Congress and President Bush are protecting Fannie Mae and Freddie Mac.
The next bubble to burst may be in the credit-card market. "To the Point" looks at what’s next for low-income retirees, recent college graduates and first-time home buyers, and whether this the time to invest.
Guests:
– Linda Stern: Contributing Editor, "Newsweek"
– Robert Manning: Professor of Finance, Rochester Institute of Technology
– Robert Hobbs: Deputy Director, National Consumer Law Center
– Ben Popken: Editor, Consumerist.com
– Eric Tyson: Author of books on personal finance
Hosted by award-winning journalist Warren Olney, "To the Point" presents informative and thought-provoking discussion of major news stories — front-page issues that attract a savvy and serious news audience.
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