Wednesday, April 15, 2009

Capital One Credit Card Charge-Offs Increase Sharply in March

by Bill McBride on 4/15/2009 04:01:00 PM

From Zero Hedge blog:

Some very ugly credit card charge-off data just out from Capital One. The February annualized rate of 8.06% has spiked by over 1% month-over-month to the current 9.33%, a very troubling deterioration ...
Allow me to add a graph ...

Capital One Credit Card Charge-Offs Click on graph for larger image in new window.

This graph shows the COF annualized credit card charge-off rate since January 2005.

Notice the spike in 2005 associated with a surge in bankruptcy filings ahead of the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA).

Credit card charge-offs in March (annualized) were almost as high as the peak in 2005 (9.33% in March compared to 9.75% in October 2005)

Stock Market Crashes And a market graph too from Doug Short of dshort.com (financial planner): "Four Bad Bears".

This is the 2nd worst S&P 500 / DOW bear market in the U.S. in 100 years.

Note that the Great Depression crash is based on the DOW; the three others are for the S&P 500.