The Conservative Cave
Current Events => Economics => Topic started by: Wretched Excess on October 19, 2008, 05:57:07 PM
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a couple of thoughts. first, we should have expected that after we bought houses, we were going to buy cars, and ultimately people's
bar tabs. I am thinking more and more often that we should have the the whole horror show go "splat".
Bad credit card debt is expected to reach $100B
A massive tidal wave of bad credit card debt is surging toward Wall Street, prompting more investor panic and pushing more consumers to the brink of financial devastation.
That’s according to Innovest Strategic Value Advisors, an international investment research and advisory firm. Its latest report, “Credit Cards at a Tipping Point,†forecasts that credit card charge-offs by financial institutions will reach near $100 billion by the end of 2009.
Charge-offs are when credit card accounts have been deemed irrecoverable or there has been no payment for 120 days, according to Innovest.
The economy already is shaky under the crushing weight of the mortgage crisis, and this will only add to that instability, said Gregory Larkin, senior analyst with Innovest.
“This is really going to start registering in the first quarter of 2009, when we’re looking at about $18.5 billion to $20 billion of charge-offs, and by probably the (end of) 2009 we’re probably looking at between $96 billion and $102 billion, and then after that we think it will start to taper off,†he said. “In our view, it’s at least a 12-month cycle. We’ve never seen credit cards default at this level before, so this is going to break the record.â€
Evidence of increasing credit card charge-offs is mounting. Last week, Citigroup announced its fourth straight quarterly loss and said more of its credit card holders in North America became delinquent, and more had to be written off. Its credit card loss rate jumped to 7.3 percent from 6.46 percent in the second quarter and 4.37 percent a year ago.
More (http://www.eastvalleytribune.com/story/128458)
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Freakin' bums.
Pay your damn bills, deadbeats.
why? if they don't, you and I will. if BHO is elected, watch them totally rewrite the bankruptcy laws so that the banks that got gubmint money are required to extend bankrutees credit . . . since it is all george bush's fault, and none of their own, why should the poor little guy be held responsible for GWB's criminal conduct?
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a couple of thoughts. first, we should have expected that after we bought houses, we were going to buy cars, and ultimately people's
bar tabs. I am thinking more and more often that we should have the the whole horror show go "splat".
WE, I was one of the few to advocate letting the whole thing go splat. In my opinion the only thing this whole $700,000,000,000 bailout package has done, it is too temporarily delay the inevitable.
Time will tell if I am correct or incorrect
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You're right.
I was just remembering the interest rates we had under Jimmah Cahter.
you're right. I have an idea that those kinds of interest rates are due for a return appearance.
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you're right. I have an idea that those kinds of interest rates are due for a return appearance.
Mortgage interest rates continue to be high, despite the Fed interest cuts.
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Mortgage interest rates continue to be high, despite the Fed interest cuts.
You think Mortgage interest rates are high ? They are stillonly a few points above the inflation rate. In essense free money. Thats part of the problem, too much credit available & to easy to get it.
Hell I remember being somewhat thrilled about getting an 8 % mortgage rate when we purchased out second home.
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You think Mortgage interest rates are high ? They are stillonly a few points above the inflation rate. In essense free money. Thats part of the problem, too much credit available & to easy to get it.
Hell I remember being somewhat thrilled about getting an 8 % mortgage rate when we purchased out second home.
I am hanging on to my 5% fixed like the dickens. Rates these days appear to be hovering in the 6.5-7 level.
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Given that it's unsecured debt in the first place, I have a hard time seeing it becoming the same kind of crisis as the mortgage situation. Potential to put us into a Carter-era inflation/interest rate cycle within a year, absolutely, crashing the banks completely, I don't see it.
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WE, I was one of the few to advocate letting the whole thing go splat. In my opinion the only thing this whole $700,000,000,000 bailout package has done, it is too temporarily delay the inevitable.
Time will tell if I am correct or incorrect
I think you're right because $700,000,000,000 is too small an amount since it is the loss of the value of real estate that caused all of these dodgy swaps and whatnot to saddle the banks with the bad debt.