You’ve seen the Capital One commercials in which dumb thugs dressed in chain mail and carrying broad axes do random damage. The question asked is, “What’s in your wallet?”.
Before the current economic crisis, those commercials were (at best) cute. But even in good days, the commercials seemed to hint at a mixed message. Now, the Viking-like thugs have taken on an ominous tone.
Without questions, credit card companies are hurting. Perhaps it’s the pendulum of justice that swings through the universe. Did they put too many cards in too many card holder’s wallets. Or perhaps the credit card corporations have offered too much credit to the uncredit-worthy at huge interest rates for so long that it’s coming back to bite them. Battle axes and swords cut on both sides.
In, “Credit card industry faces tough 2009, Capital One loss suggests challenges for rivals like American Express“, MarketWatch is reporting on the difficulties the credit card industry faces in 2009. It’s not a pretty picture.
In “What’s In Your Wallet … Deadbeat“, Barron’s reports net charge-offs increased to 7.71% in December.
2009 is not setting up to look good for the credit card industry.
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