American Express Feels The Credit Crunch

As credit cards represent a huge sector of the economy in America, it comes as no surprise that this industry is feeling the same effects that consumers are experiencing when it comes to struggling with debt. Indeed, credit cards are technically debt in themselves, so the correlation would make sense, but it holds especially true when these companies have to experience delinquency and lost profits due to those who are unable to pay their bills fully or on time due to the economic slump.
[Read more]

End Of The Credit Crunch?

Facing the distribution of those much needed rebate checks, US Treasury Secretary Henry Paulson is optimistic that the end of the credit crunch is near. Paulson admits that the high price of gasoline will prove problematic when it comes to reviving the struggling economy he does sound hopeful that the economy will receive the boost that the stimulus package was intended for. [Read more]

Could The Credit Crisis Be Over Soon?

Although many are concerned about the economic condition of the country, John Mack expressed a particularly rare take on the credit crunch, believing that an end is in sight to the troubles in the US subprime and leveraged loans market and that the crisis could very well be over in as little as six months.

John Mack, chairman and chief executive of the Morgan Stanley corporation, said that, although the market conditions are the worst he had seen in the 40 years that he has operated on Wall Street, the problems in the subprime and leveraged loans market are at the end of their line and coming to a closure. In his words, they’re in the “top of the 9th inning”, making an analogy to the last part of a baseball game. [Read more]

Credit Delinquencies Soar

The Associated Press is reporting that credit card delinquencies are soaring—a situation which could even worsen in the months ahead.

The largest spike appears to be in credit card accounts that are more than three months delinquent.

Financial experts across the country say that the subprime loan debacle could be partly to blame for the mess. If the economy falls into recession, the number of credit card accounts in arrears could rise exponentially. [Read more]