Mostly: Classical

[Sexton O Blake]

Was watching NBR tonight and two things that caught me eye were:

a) AMEX reported credit card default rates rose in February.

What is funny is that on another show a week or two ago, someone loved VISA and suggested basically that unlike regular loans VISA (and other credit card companies) are in a much better position - suggesting that their (short term) loans are somehow contained (or something). I thought it was Grade "A" Calgary Stampede Horse Shit - and AMEX proves this point. All I have been hearing since early 2000 is how much credit card debt people have. Can't people walk away or sell their CC debt to a collection agency who will just negotiate better terms? Utter folly.

Membership may have its privileges but it also comes with a bill that more and more can't afford. American Express, the credit card company that prides itself on steering clear of deadbeats, is seeing a higher percentage of its customers defaulting on their debt, according to numbers released Monday.

The company's net write-offs climbed to 8.7% in February, a big jump from the beginning of the year, when the number was 7.5%. Things may not get better soon: the portion of customers more than 30 days behind on their payments also jumped, to 5.3% from 4.7%.

Full Story

2) Rails Move uP
Bank of America / Merrill issued buy for Union Pacific - feel the volumes for the sector have bottomed out.

Rising volumes certainly is a good indicator of an improving (global) economy. I know Kevin O'Leary on BNN loves most of the shipping (boats) stocks. His feeling is that the credit crunch will prevent companies getting capital to build newer ships, thus keeping the demand for the existing fleet in high demand.

Blakey