JP Morgan Chase faces very large credit card losses

LOL and few months before Chase picked up WAMU, they opened a crap load of new credit card accounts with 0% APR for one year.

good luck.

I think it's a very low estimate that there'll only be a 9% loss in Chase credit card divisions. Most people who are in trouble now are opting for debt settlement which is at best a 50% recovery the others are probably gonna file for bankruptcy.

Remember that Chase not only picked up Wamu's bad debt but it also held all the Circuit City consumer debt as well, branded store cards where all Chase.

Maybe when you pick up someone else's S!#@t it rubs off on you...

Yes, I believe that the next wave in the global financial meltdown will be in the form of plastic. That will end up being one of the bigger driving factors in the deflationary spiral. Deflationary in spite of the fantastic increase in the money supply over the last 6 months, because of the mattress money phenomenon slowing the money velocity, coupled with large disincentives to production by the current Socialist administration. Deflation is a very powerful positive-feedback cycle, and it will take many trillions of dollars to break it. Although breaking the deflation will be as bad or worse.

None of this was difficult to see coming; you have only to realize that real wealth is a product of human effort applied to capital to produce goods and services. We are currently skewed heavily towards 'services', so that production of tangible goods is going outside the country. When everybody is trying to make money with financial maneuvering (aka 'services') instead of real production, economic collapse is the inevitable result.

JPMC may be one of the few banks that won't fail. The leadership there saw what was going on nearly two years ago (when I worked there), and started working to make sure they land on top of the rubble heap when the banking system collapses (that included getting rid of me, but I'm not unhappy about that -- I landed on my feet). Although I don't understand why they bought WAMU (unless it was one of the strings attached to the TARP). I clearly understood at the time that the acquisition of WAMU made JPMC the largest plastic-money issuer in the world, and that was going to hurt. For the time being, I am still keeping my checking account at JPMC, even though I am keeping enough cash outside the banking system to cover several mortgage payments during the coming Obama bank holiday. Since my home mortgage is essentially my only debt, I'm hoping I will be able to ride this one out in relatively good shape.

Meanwhile, my Texas Concealed Handgun License training business is doing great (thanks, BHO, for the 'stimulus').

Of course, I might be wrong about the collapse (or maybe just the timing, which is trickier), but better to be prepared for something that doesn't happen than to be unprepared for something that does. The Mormon idea of laying in a sizable non-perishable food supply is a case in point.

Yup, I believe the credit card losses will get worse! I was a WaMu lady for the past 10 years. Never late, never really carried a balance for more than two or three months, have EXCELLENT credit, and a low interest rate. Chase gulped down all the WaMu cardholders, double their interest rates on new and EXISTING balances, and I cancelled the card! Punish me - an excellent card holder? I think not. I'd rather go without. I hope EVERY cardholder CANCELS their credit cards. Let Chase and every other bailout bank go bust. We CAN prove they're NOT "too big to fail." Go with credit unions or small banks. Let the "big" banks go bust!

It looks like the plastic-money meltdown is well under way now. Advanta shut down all small business credit cards that they had (including mine) with 4 days notice. Actually, I learned from another source 2 days before Advanta finally furnished official notice.

According to the official notice from Advanta, they are "deeply committed" to helping us through this difficult period. In light of the fact that they saw fit to give their small business cardholders FOUR DAYS NOTICE, that strikes me as... as... BULLSHIT.

Fortunately for my business, we have some other alternatives, including cash. I'll bet there are many other small business owners for whom this will be a major problem.

For everyone else, if you want minimize your participation in the plastic money meltdown, burn your credit cards now, and learn to do without. You will have to learn how to do that soon, anyway.

CHASE has gotten my attention and my vote for a melt-down....as an arranged automatic payment did not go through (as I was paying off the month's account balance)
and, without any notice to me of the failure of that payment, a $39 RETURNED PAYMENT FEE, a $39 LATE FEE, and a finance charge for the UNPAID BALANCE gets added. The only notice is the next statement. My vote was, as no remedy could be made in that matter, to cancel the card and assure CHASE that no payment would be made until the charges went into collection and I would make a "deal" on a settlement payment.
My credit score can take that "hit"....probably CHASE can as well!!

I am going to default on what Chase says I owe. Their auto pay system fouled up and they closed my acct. After trying the nice talk and then screaming like a banshee to get the card reinstated to avoid the credit report hit I said screw it, they don't want the outrageous finance charge they hit me with every month (I haven't used the card in 2 years) I will not send them another penny. I will write my letter to Experian with my lame explanation and will also contact my Congressmen... for all the good it will do. I have business loans that I can use this money for and I am considered a valuable customer with these folks. Chase and JP Morgan are crap in my shoe and I have had it with them.