Friday, Oct 17, 2008
Consumers are increasingly unable to pay off their credit cards, forcing banks to hoard cash
Washington Post: Banks Hoard Cash as Credit Card Defaults Rise
Consumers are increasingly unable to pay off their credit cards, forcing banks to hoard cash to protect against future losses and lend to fewer people, according to reports yesterday from several of the nation's largest banks.
These financial disclosures showed a spike in credit card loans going bad, putting further pressure on already-stressed balance sheets. J.P. Morgan Chase said the number of credit card loans in default rose 45 percent in the third quarter from the comparable period a year ago and predicted that default rates would sharply accelerate through 2009, with 7 percent of credit card loans going bad.
"We have to be prepared that it gets a lot worse," J.P. Morgan chief executive Jamie Dimon said about the overall economic outlook.
10 Comments
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1. another alan said...
This board is becoming malct.co.uk
2. malct said...
another alan - fair critisism - but not my intention
seems most people have slowed down recently and I'm still running
I've tried to provide a mix of subjects
but you are right, I'll back off, my apologies to those who are offended or annoyed.
3. str 2007 said...
Don't worry malct, everyone's probably busy getting teir work done as a nice weekend is forecast.
Changing the subject I'm not sure what made the ftse pop up at opening today but it's retracing fairly quickly and will be negative again soon the way it's going. And what do you know Gold is heading down aswell. Not perhaps what you'd expect. Must be some more big funds desperate for cash.
Which in turn is making their hedge look - well - not like a hedge really.
4. cornishman said...
Being basically bone idle, I find it useful if others trawl the net to find relevant things for me to look at.
Given that any one person's postings do not prevent other people from posting whatever they like also, I don't see what the problem is; except, maybe bias in the choice of articles.
5. planning4acrash said...
My big dream is that the big boys overstretched, have to sell all their gold to get their own fiat notes back to pay off the debt they created, so are left holding the bag whilst gold goes into the hands of awake, freedom loving members of the public!
6. drewster said...
I liked this post, thanks malct. I'm currently too busy to trawl the net for interesting posts, so HPC and the work of bloggers like malct is much appreciated.
7. crash bandicoot said...
Me too, I only look at the BBC website to moan now. I come here for the real news.
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