The Future of Consumer Credit in the US

During these few posts we've been writing about aspects of consumer credit today in the US.  We'd like to close our week by inviting comments about the future of consumer credit.  How much indebtedness should we expect in the long term?  Will plastic be with us forever?  Will the terms of consumer credit improve (lower interest rates, more frequent flyer miles) or worsen (higher late fees, more invasive collections practices)?

We've had a blast blogging this week. Thanks!

Overoptimism and Subprime Mortgages

Beyond all the news on the causes of, and policy responses to the current US economic crisis focusing almost solely on financial markets, it's worth paying more attention to causes and policy responses for households.  One household-level cause fits with the implications of a host of other evidence about credit choices: consumer overoptimism.