Wednesday, 17 June 2009

Credit cards vs employment: beware

As the unemployment rate surges (not only in the US but everywhere), we see in the US the continuing high correlation between credit cards delinquencies and unemployment. This is not boding well.
There appears to be universal agreement that the unemployment rate will remain very high well into 2010. Does this mean consumers and banks have tougher sledding ahead than the “green shoots” theorists are currently pricing in?


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