From the looks of it probably not. According to CNNMoney.com: Credit Card defaults keep climbing
"Data from May showed continued signs of stress for card issuers, reflective of worsening unemployment trends and deteriorating macro [economic] conditions," analysts at Berstein Research said in a report Tuesday.
Banks continue to write off credit card debt as consumers hurt by record high unemployment default at an increasing rate.
Regulatory forms filed this week by some of the nations largest banks showed default rates on credit cards rose in May. The default rate is a measure of loans that the bank does not expect to be repaid.
Seems like we are in a vicious circle. With credit hard enough to get as it is and with consumer credit scores plummeting from the defaults we are not going to get spending rolling again.
2 comments:
Interesting that the private banking cartel, the Fed, is to receive full power to regulate the banking system. The Fed is "above the law and accountable to no one" according to former chairman Alan Greenspan.
You are absolutely correct. Have you ever seen the "History of the Federal Reserve" and how the private banking cartel, the Fed, has caused economic turmoil many times since its creation. I am going to post the video. Check it out.
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