Thread: Economic conditions continue to weaken in the U.S.

Business conditions continue to weaken in the U.S. and so far this month we have seen credit indicators deteriorate beyond our expectations.

-American Express Chief Executive Kenneth Chenault

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.

Bankruptcy filings will SOAR.

Dow down 350+ today.

Oil breaks all time record of $140 today.

Yep. Things are going to keep getting A LOT worse!

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?

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.

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.

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.

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....