The next credit debacle?

Hang on. Think the worst of the credit crunch is behind us? There could be another asset about to be hit. According to Fortune, the credit card industry is showing signs of stress. Banks are warning about possible turbulence ahead and boosting their reserves against losses. If we were to see a major wave of consumer defaults, which is not impossible, securitized debt would take a hit. And we're in for a replay. Hedge funds and other owners would take a hit. Money market funds would likely be vulnerable. Most doubt it will get to that. Defaults will likely tick higher but not enough to really affect markets. But hey, it's fun to speculate.  

For more:
- here's the Fortune article

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- Putting some numbers to the credit crunch
- The big, big picture: the on-going credit crunch
- More on the credit crunch