Printer-friendly versionSend to friend

December 24, 2007 (LPAC)-- In an article which is receiving wide play in the nation's media, Associated Press examined the records of 17 of the national credit lenders, and determined that credit card defaults have taken a big jump, rising to what the Washington Times called a "crisis level." For the month of October, accounts 30 days past due were up 26% to $17.3 billion (year-on-year figures), amounting to 4% of the nation's $920 billion credit indebtedness. "Serious" delinquencies (90 or more days overdue) were up 50% for some lenders, and defaults (where lenders have given up on collection efforts) were up 18%, to over $960 million. The three companies hardest hit were Avanta, GE Capital, and British HSBC.

AP's coverage tied this directly to the ongoing mortgage crisis, where collapsing prices were wiping out borrowers home equity, on which they had built the illusion of prosperity. They a note that the areas hardest hit were Florida and California. And, like the mortgage crisis, the experts quoted all indicated that the problem would only get worse after the holidays

This, once again, underscores the necessity of LaRouche's Homeowner and Bank Protection Act.  Credit cards have become a keystone of the derivites markets, with an entire pyramid of "financial paper" keeping the bridge up.  Put a firewall between the speculators and the banks.  Defend the banks, along with the homeowners on which the banks depend.