Credit card debt is next......$915 BILLION worth

[mgabriel01]

There is something on the order of $57 Trillion in credit default swaps in circulation


the holders of some of those obligations may or may not have the ability to pay in the event of default

that one gets my vote for - 'ruh roh'

 

[ByLoSellHi]

Quote from zdreg:

some readers may take you seriously.

I agree with makloda here.

CC companies - direct debt holders and issuers alike, have much further to fall.

 

[Epiphany]

Quote from S2007S:

I know many dont want to agree with this or even bother to acknowlege it, but the truth is credit card debt is at record highs. This is going to be as big or even bigger than the subprime meltdown. There is a record $915 Billion worth of credit card debt here in the US. Many will continue to ignore it until it gets to the point where it can no longer be ignored.

Just like other asset backed securities, credit card debt is sold off as packages of securities.....now the question is what happens when there is a rise in delinquencies????

The banks feel it along with the securities backed by the credit card receivables. As consumers default on their payments this would lead to bank losses and portfolio losses in the institutions, pensions and those big hedge funds.

This is the next major economic problem that should be mentioned but is being completely ignored. Those 1500 SQ foot Piggy banks arent providing for the economy anymore, so what else better to use then the worthless dollar, plastic..............

Your idea is correct but your timing is off

You said it yourself: 'What happens when there is a rise in delinquinces?'

The CATALYST to set this off is delinquinces but this is not likely to happen any time soon. Unlike mortgages where if you skip your payments - lenders get on your case, for credit cards, if you skip a payment, nothing happens, your tab just gets bigger

Thus the credit card debt bubble will keep on growing for a while

Give it another 5 years