Credit Trouble Bites Consumers Hard
April 3, 2008 by Douglas A. McIntyreSometimes it takes experts a quarter or two to catch up with the real world. The American Bankers Association reports that during the fourth quarter of last year consumer credit payments fell behind more than they have at any time since 1992. The bucket of loans referenced includes credit cards, auto loans, and home equity lines.
According to Bloomberg "Late loans climbed 21 basis points to 2.65 percent of all accounts in a consumer-loan index created by the group." Hardly a surprise.
What is not so obvious is that the Ph.Ds hired be Wall St. have built derivatives around these segments of consumer credit just as they did with subprime loans. It is a matter of time before this paper loses enough of its value for the problems to become an issue in the quarterly reports of financial companies.
Today, no one knows what the full extent of the fall-out from these deteriorating loans may be. It is most certainly another straw on the camel’s back
Douglas A. McIntyre
Sponsored: Want to Retire Early? Here’s a Great First Step
Want retirement to come a few years earlier than you’d planned? Orare you ready to retire now, but want an extra set of eyes on your finances?
Now you can speak with up to 3 financial experts in your area for FREE. By simply clicking here you can begin to match with financial professionals who can help you build your plan to retire early. And the best part? The first conversation with them is free.
Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.