Comments for "Moody's: Record High Credit Card Charge-Offs"
monta\'s ankle says:
I would love to charge-off JS-Kit
monta\'s ankle Wed Apr 1 17:08:53 2009 CDT #
CRbot says:
This comment thread has been HALO-IZED by CRbot.
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CRbot Wed Apr 1 17:10:09 2009 CDT #
Barley says:
"marking the sixth consecutive month of increases"
SEE not everything is cliff diving
Barley Wed Apr 1 17:10:33 2009 CDT #
CuriousMWM says:
what are the implications now for default, with the new bankruptcy laws? You can't just walk away from the debt anymore, correct?
CuriousMWM Wed Apr 1 17:12:08 2009 CDT #
OkieLawyer says:
<i>what are the implications now for default, with the new bankruptcy laws? You can't just walk away from the debt anymore, correct?</i>
No, credit card debt is still unsecured non-priority debt. The only thing that changed was that the time for "presumption of abuse" was increased IIRC, by ten days. The only other significant change is the "means test" which changed the formula by which chapter 7 could be used.
Parent Post
OkieLawyer Wed Apr 1 22:57:59 2009 CDT #
OkieLawyer says:
Wait, make that twenty days.
Parent Post
OkieLawyer Wed Apr 1 22:59:40 2009 CDT #
Rent2 Moan says:
Good thing fundamentals are strong
What's with the Dow being up...?
People in my office, who thought I was God by predicting the drops of the last year or so are starting to question me now...
I say...just wait 2 months....
Rent2 Moan Wed Apr 1 17:13:00 2009 CDT #
Comrade Kristina says:
Maybe we could bring back debtors prisons? Oh wait, we have those now, we call them "houses".
Comrade Kristina Wed Apr 1 17:13:08 2009 CDT #
Kung Fu Panda says:
I'd like to know what their criteria are for deciding to charge it off...don't they know they should mark these CC bills to model? The cardholder will pay off someday...in an alternate universe.
Kung Fu Panda Wed Apr 1 17:14:32 2009 CDT #
ac says:
Maybe we could bring back debtors prisons?
Send them to the workhouse!
ac Wed Apr 1 17:17:11 2009 CDT #
Bob Dobbs says:
Anecdotally from this boad, credit card issuers are raising interest rates and lowering limits like busy little beavers -- seeking (belatedly) to improve the quality of their debt.
Which is one of those funky hidden-trigger adverse feedback loop thingies that removes more purchasing power (not the same as money) from the populace, kicks down the economy some more, decreases creditworthiness of the population, causes issues to raise interest rates and lower limits even more ... and on and on.
Bob Dobbs Wed Apr 1 17:17:55 2009 CDT #
Barley says:
Speaking of charge offs, how 'bout downgrades:
- Moody's Investors Service said Wednesday it downgraded Macy's Inc. because of deteriorating credit and retail challenges. Moody's cut Macy's senior unsecured note rating to Ba2 from Baa3, and assigned a corporate family rating of Ba2.
- Standard & Poor's on Wednesday cut its ratings on Dow Chemical Co to the lowest investment grade and warned it may cut the company into junk territory, citing concerns over debt taken on to fund its acquisition of Rohm and Haas
- Standard & Poor's knocked Ireland's triple-A sovereign credit rating down by one notch amid concerns about the country's widening budget deficit and the possible need for more steps to stabilize its banking system
- Corporate America's credit quality collapsed in the first quarter, with Moody's Investors Service downgrading an estimated $1.76 trillion of debt, a record high, the rating agency said on Wednesday.
- Standard & Poor's Ratings Services cut its credit ratings on Hovnanian Enterprises Inc. (HOV) into highly speculative territory Wednesday, saying it expects the home builder to continue posting losses through 2010.
-Moody's late on Monday cut Hartford's senior debt ratings two steps to Baa3, the lowest investment grade, and gave the company a negative outlook, indicating an additional downgrade may be more likely over the next 12 to 18 months.
-Moody's cut J.C. Penney's senior unsecured debt one notch to Ba1, one step below investment grade, from Baa3. A downgrade into junk territory can significantly increase a company's borrowing costs.
- Moody's Investors Service and Standard and Poor's Ratings Services both lowered credit ratings on Nuveen Investments Inc., with Moody's placing its corporate family rating into highly speculative territory amid equity market declines and elevated net asset outflows.
- Moody’s Investors Service on Wednesday downgraded the credit ratings of Emaar Properties and another Dubai government-linked company and assigned them both a negative outlook, due to what it said was a deterioration in the emirate’s economy and property sector.
Barley Wed Apr 1 17:19:35 2009 CDT #
MrM says:
The good news is we still have plenty of dollars left!
Fannie Mae and Freddie Mac Receive $46 Billion From Treasury
2009-04-01 21:55:04.807 GMT
By Dawn Kopecki
April 1 (Bloomberg) -- The U.S. Treasury injected
$46 billion in emergency funds into government-controlled mortgage-finance companies Fannie Mae and Freddie Mac.
The Treasury payout yesterday included a $15.2 billion investment in Fannie’s preferred stock and a $30.8 billion purchase of Freddie’s preferred shares, the companies said in separate filings to the Securities and Exchange Commission today. The companies must pay a minimum dividend of 10 percent.
MrM Wed Apr 1 17:19:51 2009 CDT #
CRbot says:
New Thread: Moody's Warns of Worst Corporate Default Rate since WWII
http://www.calculatedriskblog.com/2009/04/moodys-warns-of-worst-corporate-default.html ( 1 comments )
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CRbot Wed Apr 1 17:20:19 2009 CDT #
Barley says:
Bob Dobbs - R U saying there is a negative pattern? Or, is it a positive savings inspired cycle?
Barley Wed Apr 1 17:22:32 2009 CDT #
econproph says:
Anybody clue me in about what exactly this stat is? I don't see that 8.8% of all existing credit card debt was charged-off as bad debt and taken as a loss by the banks in Feb. I mean, if they were charging off 8.8% of all cc debt, wouldn't the level of cc debt be dramatically reduced in a few months? Or, maybe what i need is what's the amount of new charges (gross add to debt) as% of total debt to put this in perspective. Anybody help please.
econproph Wed Apr 1 17:49:25 2009 CDT #
Anonymous says:
Is there an index or historical data available for moody's number of cc chargeoffs?
Anonymous Wed Apr 1 17:53:58 2009 CDT #
doc holiday says:
Re: "charge-off rate index will peak at about 10.5 percent in the first half of 2010, assuming a coincident unemployment rate peak at 10 percent."
That's it, the bottom is in, and now, no way out!
=-X
doc holiday Wed Apr 1 19:33:34 2009 CDT #
the man from nantucket says:
woh, woh, woh...you mean i'm supposed to pay that money back? i never woulda bought so much CRAP if i knew that. that is gonna change my future comsumption levels a WHOLE LOT.
the man from nantucket Wed Apr 1 19:40:40 2009 CDT #
CFC in Ross says:
So in the late summer 2008, after I sold the (bought in 92 house) and bought a smaller, cheaper one, I paid off all debt and laddered some CDs.
Now... instead of getting nasty notices from the CCs, I am getting letters practically begging me to have a balance. HA-HA-HA.
And a very nice, printed-on-heavy card stock note from Amex, thanking me for being a card member. (Did they know somehow that I'd just read the NYT article on how they were being quite nasty to other cardholders?)
But what I don't understand - really, I don't understand -- is how people aren't more up in arms about the Obama bankster bailout plan? Stiglitz to Krugman, and so otheres, everyone has been pretty clear that it is a 'morally hazardous' give-away to the TPTB and, additionally, unlikely to have a good effect.
Are we that dumb? (probably) Too scared to want to pay attention (probably) Or have sufficiently drunk so much of the koolaid that we believe that this is 'change we can believe in'? (probably... sigh)
And why aren't the so-called free press (NYT, WaPo, LATimes, or even a free weekly) screaming -- or how about just explaining in plain language, like some on this board have done, what this all means?
Maybe we all oughta write John Stewart and ask him to have Hodgeman explain the plan to the 'merican people.
Every time I see an Obama bumper sticker -- and I'm here in SF Bay Area so I see alot of 'em -- it just makes me ill.
I'm not surprised (wasn't a fan), but still disappointed. And I can't decide if he is as dumb as I thought that he was, and doesn't really get what his plan does, or if he is just a sycophant and can't bear not too have TPTB like him, really like him.
CFC in Ross Wed Apr 1 22:05:18 2009 CDT #
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