squeeze

The highest inflation rate in three years put a squeeze on consumers' wallets in August, according to the government's key price measure.

Even the best cardholders are seeing their interest rates rise and credit lines be cut as financial firms struggle to make money in their card units.

Governments large and small have begun to ratchet up taxes. As a result, expect a slower economic recovery and, possibly, an attempt to increase taxes on retirement accounts.

As regulations tighten on credit card issuers, they are in turn putting the squeeze on customers, with higher rates and tougher standards on who gets a card.

Caught between rising default rates and new legislation that will cap interest rates, banks are protecting profits by charging even their better customers more.

Inflation erodes buying power faster for older Americans, but there are ways for those entering their retirement years to push back against the squeeze.

Public pension funds that invested really heavily in real estate are taking a really big hit. The real estate portfolio of California's civil servants, for example, lost more than a third of its value in the last fiscal year.

Stacey Vanek-Smith reports.

With more Americans paying their credit card bills late or not at all, issuers are clamping down on credit lines.

But that's hurting small businesses, which rely on credit to pay their bills. Mitchell Hartman reports.