Quote:
Originally Posted by jyl
Heard from a large bank, individuals' revolving lines of credit up significantly. Revolvers are personal lines of credit. Usually high-income consumers have these. Why are they tapping their LOCs? Alarming.
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One of my best friends fits this profile to a tee. He's been unemployed since about June, but W2'ed about $300k for 2006 and lots more in 2005. Pissed most of it away in titty bars and making his new house fancy. Just had to bring $60k to the table to sell that house a few weeks ago and needed an LOC for it. He's burned through almost everything and is now down to his 401k and little else. His wife just went back to work and is making $48k now. They're in for quite a lifestyle change. He was my boss in subprime.