Credit Slips: Credit Card Debt Absent the Mortgage Bubble
Credit Slips: Credit Card Debt Absent the Mortgage Bubble but for the mortgage bubble, we’d be seeing much higher levels of credit card debt (and that’s where we’re headed).
The mortgage bubble of the past few years was largely a refinancing bubble, not a purchase money bubble (much less a first-time homebuyer bubble). When people refinanced, they were not just refinancing their mortgages. They were also refinancing their credit card debt.