American Express’ profits fell 6% as more Americans defaulted on their credit card debts. [NYT]

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  1. timmus says:

    I’m surprised the banks aren’t phoning up their senators-in-pocket and asking for a return of real debtor prisons (or work camps to pay off the amount). All they need to do is put the right spin on it (like The Deadbeat Responsibility Act of 2008) and this dystopian concept will happen.

  2. FLConsumer says:

    I think I hear the tiniest violin playing somewhere off in the distance….

  3. dtrots says:

    This was one my predictions of the worst is yet to come. Some people are putting their mortgage payments on their credit cards to buy time. Time is running out. Just like the banks, the credit cards companies are going to start to buckle. Will happen more towards the end of the year. Massive layoffs of both banking and the credit card companies will follow. These people will need to get absorbed back into the work force. I predict this will start to pan out late 2009 or early 2010. Whichever candidate is president at the time will take credit for the economy fixing itself around that time.

  4. humphrmi says:

    /me does the happy dance of financial competence…