Hey, the hits keep coming, this one of special importance as BofA and Wells try to claw their way out from under trillions in bad obligations. Bloomberg reports that delinquencies on home-equity loans climbed to a record 3.52 percent of all accounts, up almost 50 basis points in the quarter. At the same time bank-card delinquencies hit a record 6.60 percent of all outstanding card debt in the first quarter, up from 5.52 percent in Q4.
With job losses still climbing, those numbers are only going to be worse in Q2 and probably Q3 as well. If that is the case, how will the banks cope?
Long about Labor Day the stuff is going hit the fan, you watch.
