Get used to this headline. U.S. consumers fall behind on loans at record pace
According to the story Soaring U.S. unemployment and a shrinking economy drove delinquencies on credit card debt and home equity loans to all-time highs in the first quarter as a record number of cash-strapped consumers fell behind on their bills.
Delinquencies on the value of all card debt soared to a record 6.60 percent from 5.52 percent in the fourth quarter as more cardholders relied on plastic to meet day-to-day expenses, the American Bankers Association said.
Late payments on home equity loans rose to 3.52 percent from 3.03 percent, and on home equity lines of credit climbed to 1.89 percent from 1.46 percent.
The wasted trillions in the various stimulus and bailout packages are simply dragging this out in my opinion. And today there’s talk that a second stimulus package is needed – are they freaking nuts? If BoA and Citi and AIG and GM and Chrysler and (insert bailout recipient here) had been allowed to fail, other – solid – companies would be snapping up their assets at fire sale prices today. And investors in those badly run companies would lose their money. That’s the way it’s supposed to work.
Instead we’re taking money from smart investors and companies (via taxes) and propping up the bad ones. And somehow most people – and economists – think this is a good idea.
News flash – most people and economists are simply partisan hacks, saying whatever they think will advance their political agenda. And they’re wrong.
gk
Effor's Blog 