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Credit card defaults hit new record high



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Predictable and not encouraging news for the banks who are also eying commercial real estate problems. Whether the gentle handling of the banks have delayed the banking pain (as some suggest) remains to be seen but it does look like an over-valued sector over time. Reuters:

The U.S. credit card charge-off rate rose to a record high in August, as more Americans lost their jobs, Moody's Investors Service said on Wednesday, in another sign consumers remain under stress.

The Moody's credit card charge-off index -- which measures credit card loans that banks do not expect to be repaid -- rose to 11.49 percent in August from 10.52 percent in July.


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