Bad Credit: More Risk to the Economy than Terrorism, Survey Says
August 27, 2007
Bad credit has replaced terrorism as the gravest immediate risk threatening the economy, the National Association of Business Economics reported Monday to the Associated Press.
Borrowers' declining ability to pay their bills and the subsequent fallout in the credit markets this summer topped the list of short-term risks on peoples' minds, according to a survey of 258 members conducted by the Washington-based association. The survey showed 32 percent of its members cited loan defaults and excessive debt as their biggest near-term concern.
Only 20 percent of members cited defense and terrorism as their biggest immediate worry, down from 35 percent when the survey was last conducted in March. Credit risk also topped gas prices, inflation and government spending.
The greatest long-term risk facing the economy is still health care costs and the medical needs of an aging population, surveyed NABE members said.
Posted by Michelle Krebs at 6:50 AM under Analysis , Business | Comments (1) | digg this | Seed Newsvine
How does this all impact financial security and planning for retirement? People are living day-to-day off their credit cards. I can see how this fear is greater than terrorism. Not all of us are planners but at least my organization, Heinz Family Philanthropies, is doing something to help women achieve financial independence. We produced a free ebook called What Women Need to Know About Retirement.
http://www.womensretirement.org
I blame the credit card industry and banks for this credit crunch but hopefully we can empower consumers before its too late!
Posted by: Aaron | August 27, 2007 at 7:52 AM