Credit Cards and Auto Loans: $2.5 Trillion Outstanding Consumer Debt. If you can’t find a Qualified Borrower or Buyer still lend the Money.
One of the many problems that led up to the economic crisis was easy access to debt. This included easy access to home loans, auto loans, and credit cards. You would have a hard time finding a reputable source that would argue otherwise. Yet in the latest release of consumer credit data from the Federal Reserve, we see lax lending entering the market once again. Some of this is being funneled to automotive loans while credit card debt is contracting at a steady pace. Recent reports show that credit card companies have yanked 8 million credit cards off the market and they are not slowing down.
Why There will be no other Bubble to Save us from this 40 Year Financial Bubble: From Manufacturing, Technology, and Financial Services. Real Estate Bubble. Drop in Corporate Tax Receipts.
This recession is already the longest since the Great Depression. Now merely saying that this recession is the longest does not expose the magnitude and depth of the economic damage inflicted on the market. $11.2 trillion has been wiped off the balance sheet of American households.  In this article I want to examine a few different economic indicators that go beyond the mainstream data points. It is important to put this recession in context because it will also guide our progress moving forward.
Bank of America: $931 billion in Loans and Leases. Net Income Fell by $11 billion in 2008. Gear up for Financial Earnings Season.
The market is now fully engaged in earnings season. Market sentiment stocks like Alcoa reported a loss bigger than analyst had expected but all eyes are focused on the financial industry. That is why when Wells Fargo announced an early $3 billion profit, the markets went into full rally mode. Yet once you dig into the details, you realize that the gain was nothing more than smoke and mirrors. This is like getting excited over Countrywide Financial announcing profits months before the market crashed. It is important to examine the financial situation of these banks earlier since we will be hearing many reports in the next few weeks. One bank to look at is Bank of America.
Wells Fargo: $865 Billion in Loans. Time to Really Examine the Wells Fargo $3 Billion First Quarter Expected Bounce. $57 billion in Pick-a-Pay Loans Still Waiting.
It was rather stunning to see the market react so positively to a bank that has received $25 billion in taxpayer money turn a profit of $3 billion in the first quarter, which also included the FASB mark to market rule adjustment. What many people have seemed to forget in the last few weeks is that Wells Fargo in their infinite wisdom took over Wachovia. Wachovia for many of those who do not know swallowed uber toxic mortgage dealer Golden West that ultimately led to the demise of the bank because of mortgage indigestion. So Wachoiva was swallowed up by Wells Fargo in a shotgun marriage similar to JP Morgan Chase taking the entirety of Washington Mutual.