U.S. credit card defaults up less than expected, uncertain to continue

July 15, 2009 by · Leave a Comment
Filed under: Economic News 

At this point you have to take a “wait & see” approach to this development.  In the last 6 months I have noticed a few statistics like existing home sales that for one month improved dramatically in a previous month, just so the statistic would crash the next month.   I hope we are seeing a real recovery but until the unemployment numbers start going down consistently month over month, I am not going to signal any sort of opinion that would suggest that is what is happening in the economy today.   I am watching the banks earnings numbers to see what they might tell us about the current situation and the guidance or lack there of going forward.

News (Reuters):

Two of the biggest U.S. credit card companies, Capital One Financial Corp and Discover Financial Services, reported lower-than-expected defaults and delinquencies in June, sending their shares sharply higher.

Read more

U.S. Consumer Credit Dropped by $7.9 billion, the most since 1943 when it was tracked

October 7, 2008 by · Leave a Comment
Filed under: Industry News 

Wow, the tide is really going out quick. What is even more interesting is that lending that is secured by property (Home Equity Loans) is not tracked in this statistic. I believe if it was it would be even more drastic if that figure was included. I will do some research to see if I can find that number or please post it in the comments below and I will repost. The main fact is easy money through credit is over and this is reducing the U.S. consumers purchasing power and that is having a global effect. We need to get back to basics and people need to learn how to live within their means and if they want to go above that then they will need to think out of the box and work hard. Plain and simple.

Article:

Borrowing by U.S. consumers unexpectedly fell in August by the most on record as banks shut off access to loans, a report from the Federal Reserve showed.

Consumer credit fell by $7.9 billion, the most since statistics began in 1943, to $2.58 trillion, the Fed said today in Washington. In July, credit rose by $5.2 billion, previously reported as a $4.6 billion gain. The Fed’s report doesn’t cover borrowing secured by real estate.

Read more