Economic conditions continue to weaken in the U.S.

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fffresh
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Economic conditions continue to weaken in the U.S.

Postby fffresh » Thu Jun 26, 2008 12:11 am

Business conditions continue to weaken in the U.S. and so far this month we have seen credit indicators deteriorate beyond our expectations.
[RIGHT]-American Express Chief Executive Kenneth Chenault[/RIGHT]


It's not just mortgage industry that is hurting. A lot of credit card companies are re-adjusting their earning forecasts for the year as the rate of defaults increases beyond what they normally expect.

In January Amex's CFO thought the write off rate (defaults on credit) would peak at 5.1 to 5.3% this year. It already went past that number in March. My guess is some people that have adjustable rate mortgages have taken cash advances on their credit cards to pay them. Visa and Mastercard aren't really hurting because they make their money on the transaction fees but companies like American Express and Discover both issue cards and give the money so they are the ones that are feeling it.


magyar1045
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Postby magyar1045 » Thu Jun 26, 2008 12:13 pm

Bankruptcy filings will SOAR.

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Mogul of Pineapples
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Postby Mogul of Pineapples » Thu Jun 26, 2008 2:01 pm

Yeah I think things are gonna get a lot worse before they get better. With all these screwed up bankruptcy laws we have now thanks to someone, most of these debts aren't forgiven. Instead they just set up a payment plan. That's going to be a real nightmare as a lot of people that file bankruptcy have situations out of their control like medical bills or some other crisis so they can't help it. I hate the fact that now most still have to pay those bills even afterwards.
Disclosure: I am a moderator/paid staff of this site, which does have advertising relationships with some credit cards that are discussed and linked to. Regardless, anything I say is my honest opinion.

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Just the tip of the iceberg

Postby Cucumber » Thu Jun 26, 2008 3:32 pm

Dow down 350+ today.

Oil breaks all time record of $140 today.

Yep. Things are going to keep getting A LOT worse! :(
OBAMA
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fffresh
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Postby fffresh » Thu Jun 26, 2008 6:53 pm

The CNN homepage sure looked gloomy and doomy this afternoon listing those things you just did. The fed can't lower rates anymore because they're already at nothing. I don't know what there is left to do to boost the economy.

How long does everyone think we will keep going downhill before we reach bottom?

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Postby AnthonyBarone » Fri Jun 27, 2008 11:02 am

Flipped on the tube when I got up this morning to find out oil shot past $142 today. Ya know I don't know what's going to happen but I do know we're all hurting right now whether we're credit card companies or consumers. I know people that have cut out extra spending all together because they have to. Besides the bad loans credit card companies should be doing good right now because a lot of people are using them since they can't afford to pay with cash anymore.

We better get someone in office next year that can straighten this mess out.

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Postby magyar1045 » Fri Jun 27, 2008 11:37 am

Of course credit card companies are doing good right now, more and more people are using them primarily just for basic needs, and raising their interest levels to loanshark rates.

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Postby bozell » Mon Jun 30, 2008 9:59 pm

and credit cards are the only source of CHEAP MONEY anymore! when you have banks trying to charge us 6 or 7% for a frickin mortgage and theres credit cards that charge 0% apr as a promo and 5% after that, why would people get cash from any other place??? even home equity lines of credit today are at 6.5%! credit cards make so much sense today compred to what else is out there. not saying i think thats how it should be but thats how it is.

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Postby JG7 » Wed Jul 02, 2008 8:51 pm

Bank of America's stock price has taken a nose dive.... Not looking good it's price has slid to nearly half of what it was just two months ago.... Talks today about GM bankruptcy.... Expect the economy to continue to weaken even more....

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Postby Mogul of Pineapples » Thu Jul 03, 2008 10:48 am

Well today the new unemployment numbers came out and they were worse than expected. The sectors you would expect, auto and manufacturing,were hit the hardest.

Cars are far overpriced so this is needed. I couldn't believe it when I saw this article that talked about new car prices. A Nissan SUV that's $54,000 is crazy. How do they expect to sell these things at that price with gas at these levels?
Disclosure: I am a moderator/paid staff of this site, which does have advertising relationships with some credit cards that are discussed and linked to. Regardless, anything I say is my honest opinion.

Current Cards:
American Express: Blue Cash, Simply Cash Bank of America: WorldPoints Platinum Plus Chase: Amazon, British Airways, Cash Plus Rewards, Freedom, Ink Cash Citi: Thank You Premier, Dividend Platinum Select Discover: More
Primary Everyday Card: American Express Blue Cash
Primary Travel Card: Chase Sapphire Preferred



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