Today, American Express announced they will cut 10% of their work force.  American Express said that it is cutting 10% of its staff, suspending management salary increases and instituting a hiring freeze.

The move comes amid what CEO Ken Chenault called "one of the most challenging economic environments we've seen in many decades."

Analysts are growing more and more convinced that the credit-card industry will suffer huge losses as the credit crisis plays out.

There has been numerous reports on the internet that American Express has been slashing credit lines in recent months.  This author is one of those.  Always on time, always pay extra.  But it appears that's not good enough for American Express.  They are clearly looking to reign in on any possible risk.

It's a scary sign for the American consumer and therefore the world markets as a whole.  However, some could argue it's a smart defensive move by a company that would like to have a strong reputation in tough times.

I hate to say it, but despite their cutting my credit for no good reason, I think it's a smart business move on their part.  Sometimes I'm not so sure they should be lending that much money to me.