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Thread: Analysis: U.S. Credit Card Defaults High

  1. #1
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    Analysis: U.S. Credit Card Defaults High

    Analysis: U.S. credit card defaults high

    http://news.xinhuanet.com/english/20...nt_7303382.htm

    www.chinaview.cn 2007-12-24 11:31:43

    BEIJING, Dec. 24 (Xinhuanet) -- An Associated Press analysis of financial data from the country's largest card issuers shows that Americans are falling behind on their payments at an alarming rate.

    It results in a surge of delinquencies and defaults by double-digit percentages in the last year, indicating that the problems are about to get a lot worse.

    The analysis also found that the greatest rise was among accounts more than 90 days in arrears.

    Experts said these signs of the deterioration of finances of many households are partly a byproduct of the subprime mortgage crisis and could spell more trouble ahead for an already sputtering economy.

    "Debt eventually leaks into other areas, whether it starts with the mortgage and goes to the credit card or vice versa," said Cliff Tan, a visiting scholar at Stanford University and an expert on credit risk. "We're starting to see leaks now."

    The value of credit card accounts at least 30 days late jumped 26 percent to 17.3 billion U.S. dollars in October from a year earlier at 17 large credit card trusts examined by AP.

    Meanwhile, defaults rose 18 percent to almost 961 million dollars in October, according to filings made by the trusts with the Securities and Exchange Commission.

    The analyzed data represents about 325 million individual accounts held in trusts, similar to how many banks packaged and sold subprime mortgage loans.

    Together, they represent about 45 percent of the 920 billion dollars the Federal Reserve counts as credit card debt owed by Americans.

    Many economists expect delinquencies and defaults to rise further after the holiday shopping season.

    "Credit card quality will continue to erode throughout next year," said Mark Zandi, chief economist and co-founder of Moody's Economy.com Inc.
    No One Knows Everything. Only Together May We Find The Truth JG


  2. #2
    AuGmENTor Guest
    I just dropped 2 large Xmas shopping. No credit, all cash. When they send me pre-approved credit cards in the mail, I send back coupons to them in their postage paid envelopes. I run my business all in cash. NO commercial credit. When I am paid by check on a job, I go right to that persons bank and cash it. If the bank doesn't let me, I deposit it into an account that was set up WAY before the patriot act, and is not linked to me (but I hold the card.) As soon as it clears, I withdrawl as much as I can, leaving the minimum balance to keep the account open, fees paid. Livimg off the grid is awsome!
    I don't think I will feel what is coming as much as someone based in credit. I think we are wittnessing the begginning of the end of the American reich.

  3. #3
    simuvac Guest
    Borrowing run amok is the main reason we won't see a rebellion against the government in the near future. People up to their ears in debt tend not to take chances, like challenging their employer or attending a protest that incurs travel expenses.

  4. #4
    AuGmENTor Guest
    [IMHO]By my estimation, rebellion is a bit more than taking it to the streets, mmmmmaaaaaaannnnn. People are just cunts these days. A nation of PC, wimpy cunts. The system is more broke than any mere protest could ever hope to fix. [/IMHO]

  5. #5
    dMole Guest

    Werd.

    Quote Originally Posted by AuGmENTor
    [IMHO] People are just cunts these days. A nation of PC, wimpy cunts. The system is more broke than any mere protest could ever hope to fix. [/IMHO]
    I must inform you AuG that your opinion here is BALLSY, ENTIRELY un-PC, and spot-on-the-gnat's-ass from my observations.

    Telling the truth isn't going to make you too many friends these days, though.

  6. #6
    AuGmENTor Guest
    Good, I know I'm in the right place!
    Quote Originally Posted by dMole
    I must inform you AuG that your opinion here is BALLSY, ENTIRELY un-PC, and spot-on-the-gnat's-ass from my observations.

    Telling the truth isn't going to make you too many friends these days, though.

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