The Squeeze Gets Tighter: Rich People Quit Paying their Bills
Even more affluent consumers are failing to pay their mortgages and credit card bills on time, the Financial Times reports. JPMorganChase chief executive Jamie Dimon told Wall Street that the outlook for prime mortgages was “terrible,” and American Express said its safest and most profitable borrowers are paying late, the Times said. Second-quarter results for banks and financial institutions show losses from once-dependable customers hit by rising gas costs, falling house prices and the slowing economy.
Both firms, along with other banks and lenders, are tightening credit across the board as a result. From the FT:
The crisis is just starting to spread beyond the middle class,