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(See "Whitney: Credit Contracting". and "Transcript: Meredith Whitney Interview").
With less credit available and unemployment worsening, the American consumer could be left barely afloat, unable lead an economic recovery (see "Whitney: Credit Contracting").
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As credit contracts and asset prices plunge, demand across the globe is shrivelling.
Creditor institution compensation should be garnished to help pay for the bail-out, and future credit contracts should have the possibility of bankrupcty written into them.
New research shows that one of the first signs of impending dementia is an inability to understand money and credit, contracts and agreements.
The return of heavy unsecured borrowing follows a three-year hiatus between August 2009 and August 2012, when consumer credit contracted every month.
Parker's book is a good account of the Wall Street crash of 1929 and the resulting worldwide depression as banks failed, credit contracted, tariff barriers were erected and the volume of world trade fell by two-thirds.
The £9.6bn contraction in lending reported by the Bank of England does not directly correlate with the promises made by the Project Merlin banks but gives a picture of what happened in 2011 when credit contracted in every quarter.
The commission, which says debt collection is its top consumer complaint, proposed that states require collectors to include more information about debts in their lawsuits, including a breakdown of the current balance by principal, interest and fees, and the relevant terms of the original credit contract, if not the contract itself.
Credit contracted in both May and June.
But on the same day, the price of an Enron credit contract jumped 18%.
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