As noted in Nov 2007, the next thing to watch following sub prime which was already prevalent then was credit card defaults.  It has taken longer than expected which is interesting, but it is now clearly a trend, although being managed so far.  It is clear that credit card companies are pro-actively managing the situation knowing full well that to ignore would bring disaster.  Read Calculated Risk here for examples. Capital One Chargeoffs Rise To 9.4%; American Express Chargeoffs 10%; Card Issuance Drops 50% Credit cards losses are accelerating at Capital One, a trend one should expect to continue given … Continue reading Credit Card defaults rising although manageable so far