Economic update

There have been a couple of interesting stories over the weekend covering the U.S and global economic crisis. Instead of posting the entire article, please see some short descriptions and links to reports that stood out.

Credit-card companies raising interest rates, cutting holders' limits by The Seattle Times - Credit card companies has raised interest and lowering credit limits since credit-card-reform legislation was signed into law in May. Greg McBride a senior analyst with Bankrate.com warns that between now and late February when the legislation takes effect, issuers will continue to raise credit-card rates as well as institute new and higher fees.

I have reported on California's fiscal crisis.The have issued IOU's to pay vendors. The Financial Times reports on the impact this will have on financial markets, "California ills could give US headache".

The Los Angeles Times reported that"Many underwater homeowners are deliberately walking away from mortgages", A study finds that 26% of the defaults across the country are calculated economic decisions to bail out of loans by borrowers who could afford to make the monthly payments.