Credit Losses Rising Anywhere and Everywhere

By Daniel at 10 July, 2009, 11:32 am

by Mike Larson 07-10-09
Mike Larson

Remember when policymakers at the Federal Reserve told us in 2007 and 2008 that the credit problems were “contained” to the subprime mortgage sector? Or when then-Treasury Secretary Henry Paulson spouted the same line?

Oops.

We’ve already established how those guys were dead wrong about home loans. Indeed, the delinquency rate on U.S. mortgages surged to a record 9.12 percent in the first quarter of this year. Late payments rose in ALL categories, including prime fixed-rate loans, the absolute “cream of the crop” in the mortgage world.

Now, it’s clear they were dead wrong about the entire credit market! Credit losses and delinquencies are rising anywhere and everywhere, and I’ve got the numbers to prove it.
In the first quarter of this year, the credit card delinquency rate shot up to 6.6 percent … a record high.

http://www.moneyandmarkets.com/credit-losses-rising-anywhere-and-everywhere-34629