More signs of a collapsing economy. According to CNBC:
U.S. credit card defaults rose to record highs in May, with a steep deterioration of Bank of America’s lending portfolio, in another sign that consumers remain under severe stress.
JPMorgan Chase—the second-largest U.S. bank and the biggest issuer of Visa-branded credit cards—said its default rate rose to […]

Jun - 9th

The American way of people living beyond their means

Posted at 2:39 pm | Filed Under Credit Crunch, Bailout News, California Housing Crash, The Economy, Real Estate

More signs of this bubble economy that is bursting. We have built our prosperity on credit and we are now paying the price. According to this article in the LA Times:
To get cash for business expenses, one-third of California small-business owners took out exotic, high-risk products, such as those that required little proof of income […]

May - 28th

Evicted turning to motels as last resort

Posted at 7:51 am | Filed Under Credit Crunch, Bailout News, California Housing Crash, Real Estate

Visit msnbc.com for Breaking News, World News, and News about the Economy

May - 27th

FDIC: 305 banks are in trouble

Posted at 10:35 am | Filed Under Credit, Credit Crunch, The Economy, Real Estate

According to Bloomberg:
May 27 (Bloomberg) — U.S. “problem” banks climbed 21 percent to the highest total in 15 years in the first quarter, and provisions set aside for loan losses weighed on industry earnings, the Federal Deposit Insurance Corp. said.
The FDIC classified 305 banks with $220 billion in assets as “problem” lenders as of […]

May - 26th

A new wave of foreclosures is coming

Posted at 1:24 pm | Filed Under Credit Crunch, California Housing Crash, Florida Housing Crash, The Economy, Real Estate

This from CNBC:
As job losses rise, growing numbers of American homeowners with once solid credit are falling behind on their mortgages, amplifying a wave of foreclosures.
“We’re about to have a big problem,” said Morris A. Davis, a real estate expert at the University of Wisconsin. “Foreclosures were bad last year? It’s going to get worse.”
Economists […]