November 26, 2008
... Raphael Bostic, professor of real estate and associate director for USC's Lusk Center for Real Estate, said he is encouraged by the Fed's move to bolster the credit-card market. In recent weeks, companies that issue credit cards have reduced credit lines and raised rates on some customers. Those moves were a sign the credit crunch is spreading, Bostic said.
The Fed's move should support the balance sheets of companies like American Express and Capital One, Bostic said.
Bostic said the Fed's plan is "one of the first times we have seen proactive policy." In other words, the government acted before credit-card companies started failing, he said...