It Figures

Does True Competition Among Credit Card Issuers Exist?

The most transparent and objective measure of competition in an industry is the profitability of the participants. Sustained above average profitability is a sign of lack of competition - think drug companies in the '80's and '90's, or MSFT a decade ago.

Given that most credit card issuers are losing money right now, and have for the last year or so, it is hard to characterize the sector as lacking competition in any economic sense.

Folks would benefit from trying to separate their personal "beefs" with these companies from their economic/investment analysis

Capital One Defies Even Constanza Logic

Most of your facts are approximately accurate but your conclusion is wrong. Those paying attention knew all these terrible things were coming months ago. That's why the stock trades in the teens today instead of near $50, where it was in the fall when they sold stock to bolster their capital. You are too late.

Moody's Sees Stress on Credit Card Industry Through 2009

juggerMan got it right. Moody's/S&P now blindly negative to try to make us forget their mammoth ineptitude leading up to all this. Amazing anyone pays them any attention at all anymore.

Moody's Sees Stress on Credit Card Industry Through 2009

juggerMan got it right. When's the last time Moody's/S&P made an accurate forecast? Beyond me that anyone takes them seriously anymore.