Comments on: More credit card writedowns are coming http://www.creditwritedowns.com/2009/04/more-credit-card-writedowns-are-coming.html Sat, 21 Nov 2009 08:48:41 -0700 http://wordpress.org/?v=2.8.6 hourly 1 By: Edward Harrison http://www.creditwritedowns.com/2009/04/more-credit-card-writedowns-are-coming.html/comment-page-1#comment-4616 Edward Harrison Thu, 02 Apr 2009 16:26:42 +0000 http://www.creditwritedowns.com/?p=7712#comment-4616 My understanding is that banks have not written down a lot of the credit card debt. And even had they written down their CDO or CDO-squared paper, it would be mostly to reflect the changes in residential housing. But, since mark-to-market rules have been changed, it really doesn't matter, does it? Now, banks won't have to write down their paper at all. Problem solved, right? My understanding is that banks have not written down a lot of the credit card debt. And even had they written down their CDO or CDO-squared paper, it would be mostly to reflect the changes in residential housing. But, since mark-to-market rules have been changed, it really doesn’t matter, does it?

Now, banks won’t have to write down their paper at all. Problem solved, right?

]]> By: wagdog http://www.creditwritedowns.com/2009/04/more-credit-card-writedowns-are-coming.html/comment-page-1#comment-4607 wagdog Thu, 02 Apr 2009 06:52:30 +0000 http://www.creditwritedowns.com/?p=7712#comment-4607 I first got wind of this big problem last year when I saw the two documentaries: <a href="http://www.maxedoutmovie.com/" rel="nofollow">Maxed Out</a> and <a href="http://video.google.com/videoplay?docid=-9016886482738598023" rel="nofollow">In Debt We Trust</a>. Both focussed on the consumer POV but little did I know that was but the tip of the iceberg. Too late to alter course now. One wonders how much of this credit card debt has been sliced and diced into CDO-like derivatives, and how much has already been written-off as part of the toxic debt due to the loss of faith in all AAA rated mortgage backed CDOs tainting that entire class of derivative. I first got wind of this big problem last year when I saw the two documentaries: Maxed Out and In Debt We Trust. Both focussed on the consumer POV but little did I know that was but the tip of the iceberg. Too late to alter course now.

One wonders how much of this credit card debt has been sliced and diced into CDO-like derivatives, and how much has already been written-off as part of the toxic debt due to the loss of faith in all AAA rated mortgage backed CDOs tainting that entire class of derivative.

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