How one knows it is going to get really ugly is when credit card companies start reducing credit limits/lines,increasing rates to around 30%+ APR (which is absurd) and canceling credit cards for no reason and canceling credit cards for those that do not accept their new APR rates. The scary part is that they are doing this to everyone including those with high FICO scores. My credit score is around 800 and this happened to me. To make the story short is banks are doing this to many in the US and when they do this to everyone people will stop spending period when they get these new high APR rates others who get their credit limits decreased will spend less while the rest who got their credit cards cancelled will stop spending period.

This started recently from the banks and effects of this will show very shortly when consumer spending goes down and more people get fired.