Credit Card Bills Could Spell Recession

Hmm, it seems the chance of recession has been bumped up to 30% in some economists eyes.

Arnold said that many consumers, particularly those without top credit
scores, will no longer be able to easily transfer balances to new cards
carrying low introductory rates.

"That's what consumers have fallen back on, and it's been a
lifesaver for the economy. It worked pretty well, even if it masked the whole consumer debt problem," said Arnold. "But that safety net [for consumers] is not
as much of an option these days."

Plus many of these guys with the subprime credit scores also have to deal with an adjustible rate mortgage that keeps going up on them. Plus, they may not be able to sell their expensive houses or even tap the home equity on it with the market is falling in many areas.

I'm pretty sure they won't be talking about buying a new TV when they might not be able to afford the house to put it in. I mean the spending cutbacks have already hit Joe Consumers' daily Starbucks fix. Make sure to get those hedges in place and sell into any Santa Claus Rally. I'm semi-short the market but I'm going to go almost all cash pretty soon.