Links for Tuesday, May 13, 2008

• Peter Schiff: The Ticking Credit Card Time Bomb – “*My guess is that many Americas continue to run up massive credit card debt because they have little intention of every paying it off. Since many who are underwater on the home loans, and behind on the auto and student loans see bankruptcy as a foregone conclusion, they see no downside to pilling on as much debt as possible while the taps remain open. *“
• Market Ticker: Desperate Men, Desperate Measures – “If we, as citizens of the United States, allow our Federal Government in any way, shape or form to bail out the people who are now desperate for a solution to their problems, then The Federal Government will have transferred that desperation onto itself.“
• The Daily Reckoning: The Fed Continues to Bamboozle Consumers Into Thinking They Are Richer Than They Really Are – “All of this new cash and credit is creating its own happy disaster. People who didn’t completely ruin themselves in the bubble phase are getting another chance. People who should be saving for their retirements, for example, are being encouraged to continue borrowing and spending as if nothing had changed. People who should move to a house they can afford are being encouraged to hold on to digs that that are beyond their means.“