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Is Credit Card Debt the Next Financial Disaster?

With the economic downturn, rising unemployment, decline in house prices, and limited ability for consumers to continue using their homes as an ATM; credit card debt is poised to be the next disaster in the financial sector with bearish outlooks for credit lenders Capital One (COF), Discover (DFS), and American Express (AXP). Credit card processors such as Visa (V) and MasterCard (MA) have also declined with the overall market, but are leveraged to the volume of transactions with debit and credit cards rather than

I'll let the picture do the talking here. Taken from Calculated Risk, we see continued rising delinquencies across the board in Residential Real Estate, Commercial Real Estate, and Consumer Credit cards.

How to play it:

The best time to buy is when we have a negativity bubble. This great nation of ours is in a deep pessimism. We have not seen consumer sentiment this low for decades (see following chart).

click to enlarge

Lower late payments for last year

Higher domestic profits

Higher revenues

Low PE ratio

Growth into 2008

Sounds great!!!!! But it is a finacial. If it wasn't for England this stock would be flying right now. But the problem with the British has been corner andis being dealt with.

As God awful leverage the American are the British are far worse with the totally bloated home values. Our came down and we dealt with the problem to minimize the fall out. Sure if your a bank that loaned out money at 6% in piles of 500,000 against an asset that depreciated you got scr

The king of the pump and dump scumbags/insurance salesmen - Warren Buffett owns over 12% of American Express. Now if you don't believe me when I say Warren Buffet IS NOTHING BUT A PUMP AND DUMP SCUMBAG, ask the folks at Level 3 (symbol LVLT). Level 3 was spwan from Peter Kiewit Inc -a construction company that leases an office space to Warren Buffett at Kiewit's corporate office. When LVLT was strapped for cash the chairmen of LVLT who also a member of Berkshire's board of directors helped work out a deal with Warren Buffett's Berkshire fund to where for less than 5% of the total funding L