Discussion in 'Stocks' started by Warrior4g, Jan 10, 2008.
just lowered guidence and will take a charge. why? you guessed it! deteriorating credit markets.
Yep, will be good to wipe out the DOW's gains tomorrow.
American Express-AXP says cardmember spending began to slow :
alliance bernstein guided down too
bond markets.. didn't react to it... just shows where things are heading for the short term.
This is not anything new, this is going to be the next major economical problem which is a slowdown in consumer spending that will take the GDP down under 2%.
credit card delinquencies will be the new subprime mortgage problem in 2008.
posted over 2 months ago......
Registered: Aug 2006
11-02-07 05:42 PM
I know many dont want to agree with this or even bother to acknowlege it, but the truth is credit card debt is at record highs. This is going to be as big or even bigger than the subprime meltdown. There is a record $915 Billion worth of credit card debt here in the US. Many will continue to ignore it until it gets to the point where it can no longer be ignored.
Just like other asset backed securities, credit card debt is sold off as packages of securities.....now the question is what happens when there is a rise in delinquencies????
The banks feel it along with the securities backed by the credit card receivables. As consumers default on their payments this would lead to bank losses and portfolio losses in the institutions, pensions and those big hedge funds.
This is the next major economic problem that should be mentioned but is being completely ignored. Those 1500 SQ foot Piggy banks arent providing for the economy anymore, so what else better to use then the worthless dollar, plastic..............
i agree 100%.
Yep, I remember when you posted that. Kind of like the sub prime thing...it's really a no-brainer, but yet very few people really took it seriously until it was right in their faces.
I am ready to short a massive amount of COF, but don't know when to pull the trigger. Would hate to short it, have it surge to 60 and stop me out, and then collapse under 20.
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