NEW YORK (Reuters) - Bank of America Corp and Citigroup Inc customers defaulted on their credit card debts in August at the highest rates since the onset of the recession, a sign that the banks' consumer lending woes are far from over.
The trend was echoed among most other major credit card issuers, dashing optimism sparked when many banks and specialty finance companies reported lower default rates for July.
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Valentin said the rise in delinquencies at some companies was double or triple the levels expected.
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Inflation is 'tame' yet Gold went from 950 two months ago to over 1000 today.
ReplyDeleteThat's 5% in less than two months, or around 40% in twelve months.
This is just the beginning - defaults will start to SOAR TO NEW LEVELS...
ReplyDeletePeople are deciding that unsecured debt can take a hike in droves, when it comes down to necessities or credit cards - bye bye credit cards
and just think, by the end of the year there will be nearly 1.5 million people out of unemployment with no backstop whatsoever
credit cards and credit scores mean jack diddly squat in this new economy...
This is expected with the current level of unemployment. However, this will have little impact on the economy compared to the Subprime bubble.
ReplyDeleteI think we will see the rate of delinquencies fall as optimism continue to grow in the economy. I know some of you will say that optimism does not feed a man or give them a job but at least it sets the stage for a better future and as long as investors and businesses are optimistic, unemployment rate will bottom and start to fall and delinquencies will fall with it.
Not true. optimism merely allows morons to proceed as though nothing is wrong. The system is fundamentally broken, and it is run by liars and thieves.
ReplyDelete6:46 THAT's like saying I bet you any money I can jump that canyon with my 10 speed. How many believe it? Thousands raise their hand..
ReplyDeleteTo suggest that a positive or negative view, for that matter, equates to denial IS moronic.
ReplyDeleteI think it's literate 'spin' to try to cast this development as a 'revolution' starting.
ReplyDeleteThe reason defaults are going up is P O V E R T Y. Lack of M O N E Y.
Not any high falutin moral imperative of the Oh so wonderfully upright and just American People.
I don't think its a spin at all. People are using their money for their own needs in life such as food and shelter. The credit card 20% + interest debts are the last thing they care to pay..In effect it is turning into a revolution.. unbeknownst to most
ReplyDelete10pm , there's a critical factor you might be unaware of.
ReplyDeleteAccording to Mish, about 6 months ago it was ascertained that many Americans where using their credit cards to purchase the necessities you are describing.
Defaults on credit cards translates into starvation for these people.
Expect the food stamp rolls to swell enormously in the coming months.
I am not giving up EA. Countdown to close this blog has began as market rally 108 points and will soon reach 10,000 point and at which point this blog is closing...delete me again if you want
ReplyDeleteYou won't be deleted because you have no point.
ReplyDeleteThe market is being artificially pumped up by printing money. The market is now fake.
You hang on in there with your shares and bonds, though, buster. That light at the end of the tunnel is shining bright (and you can keep ignoring the fact that it's an oncoming train until it hits you).
People should start to default of their credit cards. Didnt the taxpayers give billions to the same banks to bail them out. I would say everyone's card is PAID IN FULL.
ReplyDeleteIf you believe in stock market numbers/tooth fairy/santa claus, well then hell, were all in great shape ! the recession has finally hit bottom and were on our way up ! thank god for our great leader Obama and friends !
ReplyDeleteexcept for one thing, I'm self employed and my phone STOPPED RINGING ! unless its a telemarketer or someone looking for work.
Signed;PrickLeePair/broke
Stock market is not real. Helicopter Ben will remove the extra money he is printing with a crash to rein in inflation when the time is right. Goverment money safe. Peoples money gone....again
ReplyDeleteThis economic illusion is already hurting millions of people. If one believes the depression is over one will likely have problems. Stock up on food & water for 1 year if you can. Do what you can.
ReplyDeleteAfter the big banks were bailed out that had my credit cards I defaulted. Proud of it Babe!!!!
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