Hit by rising gasoline prices, a record percentage of credit-card accounts were delinquent in the second quarter, the American Bankers Association reported Wednesday.Link, from CNN Money
The ABA found that the 4.81 percent of credit-card accounts had payments that were past due by 30 days or more between April and June. That's up from 4.76 percent in the first quarter, which was the previous record. The ABA started tracking delinquencies in 1973.
The ABA also noted an increase in delinquent payments on personal loans, auto loans, home equity loans and lines of credit.
This is just the first hint of a dust cloud on the horizon, not yet arrived, but we know it is coming.
Adjustable rate mortgages on the rise and higher fuel and heating costs put the vice grips to the working classes, many of whom commute long distances to work in areas where they could not afford to live. The insatiable right wing business leaders must have seen this coming when they, and their acquiescent Democratic allies, rammed through the bankruptcy bill to make sure they would be able to wring every last cent from catastrophically indebted families. Most of these people are worn to the bone already by long commutes and fear of losing their jobs through downsizing, refusing to sleep with the boss, being late because of one too many times caught in stalled traffic, exploding in the face of a vicious and unreasonable supervisor (also afraid for his/her job), and whatever and when you take their credit away and make imminent the threat of losing a home, who knows what can happen.
Take away all the small perks, the credit, the lifelines to security and the dreams of owning, keeping and retiring in a home, in short all the things that generate a vested interest in the status quo, in a stable society, and contrast this drastically reduced sense of well being with the well publicized, ever growing, extraordinary wealth of the bandit plutocrats and you begin to assemble the ingredients for chaos.
You would think these pricks could overcome their greed with a little foresight and recognize that more prosperous, more secure middle and working classes would ensure stability and the longevity of their own privileged positions. You'd think they'd let a little more trickle down so we all could keep a comfortable few steps ahead of the monthly bills.