Smarty_Pants

Moody's Sees Stress on Credit Card Industry Through 2009

They say that money makes the world go 'round. What they don't tell you is that shortly there-after the world goes down the drain.

Moody's Sees Stress on Credit Card Industry Through 2009

Auto loans will begin crunching in earnest soon too.

Don't worry about paying for gas to drive your $45,000 leased SUV. The FED will be repossessing it soon after you stop making the monthly lease payments.

Several local new car dealers are having very hard times lately. Some have already closed down. Not enough buyers to cover their cost of carrying inventory. Some of the remaining ones have sparsely populated car lots.

Remember, this is at the beginning of the recession. More to follow as the impacts ripple through the supply chain.

Credit Card Defaults Are Just Beginning

PS. dozer:

My car only cost me $3500 about 2 1/2 years ago. And that included the cost of a new radiator. I self-financed the purchase by going to my wallet and paying in full.

The only car payments I have are insurance and fuel. Well within my budget.

There are still some of us out here that live by the old rules.

Credit Card Defaults Are Just Beginning

Let's not forget that bankruptcy laws were recently re-written to be more strict on the filer. Some will be surprised to find out that their unbacked credit card debt is in fact still backed by bankruptcy court imposed wage garnishings.

The fun is just getting started.