Yday American Express sought to convert itself to a bank holding company so as to access the FED support - a clear indication taht Amex is cash strapped. Lately Amex has been facing problems in debt markets to raise money as investors were shying away from the companys debt because of increased credit card payment shortfalls. Infact CEO of Circuit City attributed the short fall of credit card sales, and the unavailability of (cheap) credit to buy electronic goods as a factor to its downfall. Consumer banks have started to tighten the lending standards and raised the annual percentage rate for credit card debt. In its latest filing JPMorgan noted that the charge offs (% of loans that can not be recovered) are expected to rise for the next two quarters, and for the first 9 months of the year JPM set aside 11.5 Bn to cover the potential losses in the consumer loan portfolio - three times the corresponding 2007 figure. Well, things are not definitely looking good either for the Thanks Giving or for the Christmas.. I hope I get good deals on my WII, PSP and SLR!!
Interesting 'light' read: A
piece by Michael Lewis (author of Liar's Poker), calling "The End" of Wall Street.
I wish I had added something more to this post instead of talking with some old friends of mine.. :) .. One of my closest junior, ex-booze mate, ex- roommate and my friend is coming down to Dallas. Its been more than 5 years since I last saw him. I am longing for the weekend already, all eager to meet him. Lately, over the weekends, I find myself in the company of some good'ol friends!! Its FUN!!! :)
Song: "you dont know how it feels" - Tom Petty.
Mood: Nostalgic!
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