Falling Rents, Credit Card Defaults, and Market

Click on graph for larger image in new window.

This graph is from Doug Short of dshort.com (financial planner): "Four Bad Bears".

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

From Bloomberg: Manhattan Apartment Rents Drop as Employers Cut Jobs (ht Mike In Long Island)

Manhattan apartment rents dropped an average of at least 8 percent ...

Rents for studio apartments fell 11 percent to an average of $1,763, according to the broker’s data on deals in May through August compared with the same period a year earlier. The cost of a one-bedroom declined 8 percent to an average of $2,425. Two-bedrooms declined 11 percent to $3,421 and three- bedroom units fell 8 percent to $4,633.

From Reuters: U.S. credit card defaults rise to record: Moody's (ht Ron Wallstreetpit)

The U.S. credit card charge-off rate rose to a record high in August ...

The Moody's credit card charge-off index -- which measures credit card loans that banks do not expect to be repaid -- rose to 11.49 percent in August from 10.52 percent in July.
...
"We continue to call for a recovery of the credit card sector to begin once industry average charge-offs peak in mid-2010 between 12 percent and 13 percent," Moody's said in a report.

And just a note: The consensus estimate for existing home sales tomorrow is 5.35 million SAAR. I'll take the under.