Discover Card - Mortgage Mess Spills Over
Author: Rob K. Blake
Published: August 13, 2008
The mortgage meltdown is spilling over to other financial companies like Discover Financial Services the issuer of Discover Card. Discover stock price dropped yesterday 6.8 percent closing at $14.34 per share.
Discover Card Not Alone In Mortgage Crisis
Early in the week JPMorgan Chase and Co. reported to regulators it’s mortgage related losses topped $1.5 Billion for the quarter slightly higher than last quarter’s loss of $1.1 Billion according to Forbes.
Yes…folks that’s almost $3 Billion in losses in just 6 months all caused by the mortgage crisis.
I expect to see a mortgage crisis effect on all financial companies before this is over. Every credit extending industry regadless if they have a direct exposure to the mortgage market with get hit with losses and higher costs.
So don’t be surprised if interest rates on everything you buy on credit in the future to go higher to offset these losses.
And if you happen to be an investor steer clear of an firm depending on lending to generate revenues.
Good Luck!
Author: Rob K. Blake
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