Do you think Congress will bail out the credit card/car loan companies? (loans, percentage)

[70Ford]

I never thought they'd bail out real estate markets...but they did.
More Americans than ever are late on their credit cards... who knows, eh?
Don't think it could happen?
Did you think we'd be in Iraq 5 years?

...the American Bankers Association said the percentage of loans at least 30 days past due rose to 2.65 percent in the fourth quarter from 2.44 percent in the third quarter, and from 2.23 percent a year earlier.

Late payments on "indirect" auto loans, which are made through dealerships, totaled 3.13 percent, the highest on record. Delinquencies on direct auto loans rose to 1.90 percent, a 2-1/2-year high.
Credit and debit card delinquencies rose to 4.38 percent from the third quarter's 4.18 percent, following four straight quarterly declines.

Housing wasn't spared. Delinquencies on home equity loans rose to a 2-1/2-year high of 2.39 percent, and on home equity lines of credit rose to 0.96 percent, matching a level last seen in the fourth quarter of 1997.

I mean...credit is credit... right? Why can't we help those poor people who didn't understand their credit card requirements?

Oh man, that was hard to type with a straight face.

[HappyTexan]

Well if those are the same banks that have bad mortgages, why not ?
Just add it to our tax bill.

[70Ford]

You can call me "Miss Cleo."

Student, Car Debt Quietly Added to Bailout Plan : Stop The ACLU

[litlux]

I seriously doubt whether the credit card operations are in financial trouble, they make more profit, than any other form of banking, and actually more like cash cows than anything else.

Besides, it isn't the traditional banks that are in trouble, though there does seem to be an effort underway to mislead the public. Sort of like there were no Iraqis on the 9/11 planes, but the same administration that is asking for this bailout blamed them for terrorism anyway.

[Alt Dach]

Of course,Wall Street IS the goverment.

[Wild Style]

Originally Posted by litlux

I seriously doubt whether the credit card operations are in financial trouble, they make more profit, than any other form of banking, and actually more like cash cows than anything else.

Besides, it isn't the traditional banks that are in trouble, though there does seem to be an effort underway to mislead the public. Sort of like there were no Iraqis on the 9/11 planes, but the same administration that is asking for this bailout blamed them for terrorism anyway.

IIIIIIII don't know about that one link

[Wirelessany1]

Originally Posted by 70Ford

I never thought they'd bail out real estate markets...but they did.
More Americans than ever are late on their credit cards... who knows, eh?
Don't think it could happen?
Did you think we'd be in Iraq 5 years?

...the American Bankers Association said the percentage of loans at least 30 days past due rose to 2.65 percent in the fourth quarter from 2.44 percent in the third quarter, and from 2.23 percent a year earlier.

Late payments on "indirect" auto loans, which are made through dealerships, totaled 3.13 percent, the highest on record. Delinquencies on direct auto loans rose to 1.90 percent, a 2-1/2-year high.
Credit and debit card delinquencies rose to 4.38 percent from the third quarter's 4.18 percent, following four straight quarterly declines.

Housing wasn't spared. Delinquencies on home equity loans rose to a 2-1/2-year high of 2.39 percent, and on home equity lines of credit rose to 0.96 percent, matching a level last seen in the fourth quarter of 1997.

I mean...credit is credit... right? Why can't we help those poor people who didn't understand their credit card requirements?

Oh man, that was hard to type with a straight face.

I don't think Congress will bail out the credit card/car loan companies. The bail out that congress is working on has to do with mortgage-backed securities. Bad loans were made by bad lenders and then sold on the Street. These portfolios have tanked, and now we are all going to pay the price.

Unsecured debt and car loans are not sold on the Street to investors. These loan are direct liabilities to the lenders. The lenders are more agressive in collecting these debts because they directly affect their balance sheets.

[evilnewbie]

Originally Posted by Wirelessany1

I don't think Congress will bail out the credit card/car loan companies. The bail out that congress is working on has to do with mortgage-backed securities. Bad loans were made by bad lenders and then sold on the Street. These portfolios have tanked, and now we are all going to pay the price.

Unsecured debt and car loans are not sold on the Street to investors. These loan are direct liabilities to the lenders. The lenders are more agressive in collecting these debts because they directly affect their balance sheets.

That was what I was going to say... you beat me too it!

[joee]

Speaking of card companys this comes as no surprise

Credit card insiders tell of deceptive practices - Yahoo! News

[Humanoid]

So far the default rates on credit card and auto related debt isn't so bad, so far at least the moment no bailout is warranted.

What I see happening is that default rates remain high for a number of years and interest rates go up to recover lost revenue. Now that the home ATM is closed credit cards are the last fix for the debt junkie, the problems occur when they stop being able to raise their limit and/or get new cards.

I'm still getting credit card offers form WaMu....