The Economy - Where Are We Headed?

If you've been reading my Blog you know I've been sounding the alarm about HELOC's being reduced or taken away and more recently credit card companies reducing credit lines arbitrarily whether you have a good payment history or not. And the amount of money that you make has absolutely nothing to do with the reductions in credit. As I said before, if you've been hit with this situation, check your FICO score because it will, most likely, take a hit as the "credit utilization" portion (a big one in the scoring) could go from 30% to 100% utilization, as it did for a friend.

The other day CNN reported on this situation, specifically with American Express admiting that they were reducing all credit lines. And today a friend just told me she was watching Suze Orman this morning and she was talking about this, also. She went so far as to say we are going back to a cash and carry society, that credit will be a thing of the past. I wonder how MC and VISA feel about that comment considering they just went public a short while ago and she's talking about their billlion dollar businesses disappearing!

So how will this all play out in the economy? Anyone with a crystal ball?