Tuesday, September 25, 2007
Meanwhile, bond rating agency Moody’s has reported that credit card companies wrote off 4.6% of payments as uncollectable between January and May,
Could this be the new subprime crisis?
Meanwhile, bond rating agency Moody’s has reported that credit card companies wrote off 4.6% of payments as uncollectable between January and May, a 30% year-on-year increase. It’s likely to get worse; according to Merrill Lynch’s David Rosenberg, overall balances on credit cards jumped by an annual rate of 11% in May and June, showing that distressed homeowners are turning to their credit cards. “The lender of last resort as banks pull in their horns is the credit card.” All this presages a jump in credit-card delinquencies over the next year. “The next shoe to drop” in this subprime mortgage fiasco “is probably going to be the credit-card business”.
Posted by chris @ 06:38 AM (582 views)
2 thoughts on “Meanwhile, bond rating agency Moody’s has reported that credit card companies wrote off 4.6% of payments as uncollectable between January and May,”
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alan says:
Yes, card fraud is a growing pain.
However spending beyond our means is a national sport these days. Half of Essex wants to be a celeb these days. Everyone wants to be “seen in something good”.
German executive cars.
Flashy designer clothes
etc.
Yellerkat says:
But that’s the US! No dodgy credit card debt here!