This page has been archived and commenting is disabled.
October Credit-Card Delinquencies Rise Again, Approach Record Highs Says Fitch
US consumers keeps on purchasing Kindles on credit cards which they apparently have no intention of every paying off. The most recent Fitch report disclosed that October delinquencies have continued their steady climb, and together with charge-offs, are at near record highs: "Consumer credit quality remains under significant strain as a result of the persistent weakness in the labor markets," noted managing director Michael Dean. The Labor Department will report unemployment data Friday; the jobless rate is expected to hold steady at 10.2%, the highest level in decades, while the decline in payrolls is seen mitigating from the previous month.
Dow Jones reports:
All types of consumer lending have worsened the past several years, with borrowers falling increasingly behind and lenders writing off many billions of dollars of owed loans.
Fitch's credit-card performance indexes show late payments rising to their highest levels in five months and indicate higher charge-offs in the months to come.
Fitch's index on delinquencies of at least 60 days rose to 4.41% from 4.22% in September. Late-stage delinquencies are now 31% higher than year-earlier levels and just below the record high of 4.45% in June. Delinquencies of at least 30 days rose as well.
As Zero Hedge pointed out, and as Meredith Whitney has voiced her concernes about, the biggest threat to the economic going into 2010 may be that not only are banks dropping reducing overall credit availability, but that ongoing credit contraction to the tune of almost $2 trillion over the next several years will mean existing credit limits are tapped out as existing ones become increasingly maxed out.
This will likely further entrench the consumer into an accelerated deleveraging mindset, and no matter what the incremental liquidity from the Fed is, the deflationary pressures will likely continue. Which means that markets will continue in full melt-up mode to compensate for real economic losses, which benefit exlusively the top percentile of the US population as the middle and lower classes continue experiencing the brunt of the credit contraction. At some point the economic reality is sure to catch up with the market surreality. That will be the point when all the flawed market policies by the Administration and Bernanke become exposed for the clothesless emperors they are.
»
- 5459 reads
- Printer-friendly version
- Send to friend
- advertisements -
Precisely what will occur.
This is what happens when the government sets the worst example in history regarding personal responsibility.
* Consumers will begin to take their own personal bailout
*Many will stop paying taxes since it is evident the government has no conception of how to spend a dollar and only devalue it.
* Many will begin withdrawing from their annuities under the "Hardship" caveat which permits this as more jobs continue to be lost and benefit checks run out.
* America is recreated as a productive nation without a Federal Reserve within 10 years.
*Ron Paul becomes president.
*Big banks are broken up Ma Bell style.
Sorry but Ron Paul will probably be dead in 10 years...
Not that I want this, but the powers that be will quiet him one way or another.
And they used to say that Josef Stalin was literally at war with the people of the USSR. Stalin was no where near as sophisticated as our ruling clique and certainly no less focussed. I mean, he was humble enough to ask the Politboro for permission to torture imagined enemies of the state.
Buy AMZN!
On the serious note though, check this out
http://ycharts.com/companies/AMZN/income_statement
They tend to have increase in sales year year, and traditionally SEP quarter was in line with MAR quarter, this year, record sales and SEP quarter was much higher, so perhaps peeps are expecting an even higher DEC quarter sales. If I noticed that few weeks back, I'd be jumping on AMZN like there's no tomorrow, but I obviously missed it, so just gotta chill out.
Amazon chart looks like a bunch of just churning money. Expenses equalling income, with profits flat. In my business that means working a hell of a lot harder for no extra money in the pocket. Am I missing something here?
Their running in place..
...and that makes the stock attractive in what way?
That's an honest question as I am not an equities investor.
This will be a good excuse for Citi and Bank Amerika to raise interest on credit cards to 49.99%
The pertinence of this info, like most on this site, is questionable. Markets continue roaring, shorts continue pouring money into an endless pit and I'll take my own risk with < 2 hour trades!
Down with Pharoah.
I overheard the following conversation between two B of A bankers in their executive washroom while I was straining to leave an early Christams present in one of the stalls.
Banker # 1 "Nothing to see here, move along. All will be made right when the Fed armoured car shows up with another stash of cash."
Banker # 2 "Or not, but who cares, I've got my piece of the pie, so fuck off."
Long term SPY resistence line appears to be at 111 test point at this time. Oct 2007 SPY failure was at 155; April 2008 SPY failure was at 142. Connect the points and you get 111 resistence at this time. Failure at 111 will likely mean a test at 107.3 SPY to fill a previous gap.
While looking around in our local Best Buy last Friday (Black Friday), I ran into a man with two flat screen TV's in his cart. I told him I would have too be drunk to purchase just one of them and he said he was unemployed and he was going too charge up the credit cards before they get cut off. One of your stratigic defaulters!!! These banks are so fucked!!! IMO.
So what do we have to say positive about financials these days? Not much. I mean really, give me one piece of good news for bank fundamentals in 2010.
Like it or not, based on US Gov/FED investment and backstops, our most protected industry in the US is Bank Holding Companies. As a result, can we now say as financials go, so goes the market?
I know all the facts are not in. I myself would like to know if TARP is ending on December, 31. If so, well I really do not see any way around Financials taking a beating especially after Q1 reporting. Perhaps, could start in January. But, stay tuned!
Is the Bailout burden really that the US Gov/FED involvement/ownership of BHC and GSEs, is just protracted waste, a kind of forced economic inefficiency. Is the economy in permanent servitude to government corporate subversion? If so, then do we really have a functioning economy?
Mark Beck
More data:
Bank of America just announced they want to do an equity offering this month, December 2009, in order to pay back $45B of TARP. Yep, thats what they said. But, why now? Obviously, they want to get the most for their stock offering. However, if everything is OK, why not just wait until the new year and wow the crowd with your shiny new balance sheet.
Mark Beck
A jobless and creditless "recovery" with one-in-four residential homeowners underwater. It's a miracle.
HALLELUJA !!
Thank you for this info which is a date point that i watch closely.
Now I know why Goldman reiterated, yet again, the conviction buy on COF (it was yesterday or monday).
Now I know why Goldman stated that if unemployment levels off, consumer credit will improve. makes all the sense in the world to me.
Thank goodness Credit Suisse upgraded the regional banking sector today.
Thank goodness Citi upgraded Fifth Third Bancorp today.
The credit card delinquencies and commercial real estate problems have been, well, charged off so all is good! And, Dubai is all fixed, so what the phuck?
I'll take my credit card, buy gold and then default on the card.
"According to the Federal Deposit Insurance Corp. survey roughly 7.7% of U.S. households have no bank accounts, or are "unbanked," while 17.9% are underbanked. Together, roughly one in four U.S. households, or 25.6%, are either underbanked or unbanked."
WOW that is BAD
The federal statistics only report the 7.7% UnBanked rate (UB 2), while bear-focused blogger sites like to point out that the REAL unbanked rate is 25.6% (UB 6).
Of course 7.7% are unbanked. That is the equivalent of all the illegals living in Texas and Mexifornia alone.
I just use my Morgan Chase Tungsten Card to buy everything.
I'd be fucking glad to be unbanked by this shower of bastards.
Unbank the Squid!