What a year it has been for not only the U.S. economy, but the global economy as a whole. We’ve not seen such financial calamities for many decades. This year has brought us a mortgage meltdown, Wall Street collapse and a stock market blowout. In addition, we are now finding out that the auto industry is on the verge of shutting down without federal help.

So, it only makes sense that we’re going to see the credit card companies start to take a massive hit as well. And this has people talking about a credit card bailout. But is it really necessary?

Since more and more people are struggling to pay their mortgage and put food on the table, it goes without saying that many are turning to credit cards in a disasterous attempt to bridge the gap. Credit card companies know this and are taking big steps to try and limit the damage on the horizon. You’re beginning to see things that you’ve havent’ seen happen in years.

The days of getting those 0% interest offers are long gone. Or the ones with 0% interest on balance transfers. Credit lines are being reduced, and accounts that haven’t had activity for a few months are being closed. Interest rates are going up, with higher risk cardholders looking at rates in the 25-30% range. You don’t need to be a mathmatician to know how damaging that can be on a $5,000 balance.

Card companies are also taking a very close look at payment histories. If you have higher balances and only make the minimum payment, look for credit limit to be reduced or your card frozen. In some cases it will be closed down altogether. We’re even hearing reports now that some card companies are monitoring where you shop and make charges for purchases. If you are shopping where high risk shoppers are also making charges, credit lines are being reduced beause they view you as a higher risk customer. Definitely “big brother” at work here, but it’s their right. They are a business.

Even with doing all of this, credit card company executives know this will not stem the tide of delinquencies and defaults. The only question is how big the damage will be. Some are estimating losses could be as high as hundreds of billions of dollars. And with the way our government is rushing to help other businesses, it only makes sense these same executives will be clamoring for a credit card bailout.

Naturally, the questions about all of this include; how much more money can we print to pay for all of these bailouts? When and where does it end? What effect is this going to have on our nation in the coming 3-5-10 years and beyond, among many others?

I’d like to get your thoughts on this, along with any solutions or ideas you may have.