Anyone want to take a stab at analyzing American Express’ Earnings?

[Coronita]

Whoa. So it looks like American Express took a hit A.H.
http://biz.yahoo.com/ap/080721/earns_american_express.html?.v=8

It’s no surprise that they’re getting hit by increased delinquencies. But one thing that caught my attention…

“The company, known for catering to some of America’s wealthiest consumers, said the effects of the weakening economy were evident even among its more established members with excellent credit.”
….
“In a conference call with analysts, American Express executives said the company has begun to notice problems even among cardholders with credit scores ranging from 650 to 750, and those who hold mortgages on multiple properties. As a general rule, those with a credit score above 650 receive the lowest interest rates.”

Does AXP reakkt cater more to higher end clients, or is this pretty much of a myth? Me thinks it’s really more of a image thing (myth) that reality, but I don’t really follow this company.

[bsrsharma]

Many of the AMEX customers were house rich and cash poor. When the RE market cratered, they became house poor and cash poor. This is a repeat of Orange county story from early ’90s.

[bsrsharma]

Many of the AMEX customers were house rich and cash poor. When the RE market cratered, they became house poor and cash poor. This is a repeat of Orange county story from early ’90s.

[bsrsharma]

Many of the AMEX customers were house rich and cash poor. When the RE market cratered, they became house poor and cash poor. This is a repeat of Orange county story from early ’90s.

[bsrsharma]

Many of the AMEX customers were house rich and cash poor. When the RE market cratered, they became house poor and cash poor. This is a repeat of Orange county story from early ’90s.

[bsrsharma]

Many of the AMEX customers were house rich and cash poor. When the RE market cratered, they became house poor and cash poor. This is a repeat of Orange county story from early ’90s.

[Coronita]

bsrsharma,

Could you give me a refresher course in what happened in O.C. late 80ies and early 90ies. I specifically remember as a kid O.C. filed for bankruptcy? What was that about. Was that R.E. related?

(…too lazy to google it…after all, it is my middle name.)

[Coronita]

bsrsharma,

Could you give me a refresher course in what happened in O.C. late 80ies and early 90ies. I specifically remember as a kid O.C. filed for bankruptcy? What was that about. Was that R.E. related?

(…too lazy to google it…after all, it is my middle name.)

[Coronita]

bsrsharma,

Could you give me a refresher course in what happened in O.C. late 80ies and early 90ies. I specifically remember as a kid O.C. filed for bankruptcy? What was that about. Was that R.E. related?

(…too lazy to google it…after all, it is my middle name.)

[Coronita]

bsrsharma,

Could you give me a refresher course in what happened in O.C. late 80ies and early 90ies. I specifically remember as a kid O.C. filed for bankruptcy? What was that about. Was that R.E. related?

(…too lazy to google it…after all, it is my middle name.)

[Coronita]

bsrsharma,

Could you give me a refresher course in what happened in O.C. late 80ies and early 90ies. I specifically remember as a kid O.C. filed for bankruptcy? What was that about. Was that R.E. related?

(…too lazy to google it…after all, it is my middle name.)

[no_such_reality]

OC, circa 1990 to 1998. Housing prices in the tank. Employment, good but weak market. Rents, decreasing. About 1995-1998, homes could be had for less than equivalent rent.

The OC bankruptcy, was not RE related. However, I wouldn’t be surpised to see a repeat. OC went BK, because everybody was trusting the magically investment powers of the treasurer to generate big fat profits to increase their budget. Unfortunately, like the MBSes, they vaporized on risk and much like Real Estate, the hammer fell because of leverage. See Robert Citron in the Wikipedia.

[no_such_reality]

OC, circa 1990 to 1998. Housing prices in the tank. Employment, good but weak market. Rents, decreasing. About 1995-1998, homes could be had for less than equivalent rent.

The OC bankruptcy, was not RE related. However, I wouldn’t be surpised to see a repeat. OC went BK, because everybody was trusting the magically investment powers of the treasurer to generate big fat profits to increase their budget. Unfortunately, like the MBSes, they vaporized on risk and much like Real Estate, the hammer fell because of leverage. See Robert Citron in the Wikipedia.

[no_such_reality]

OC, circa 1990 to 1998. Housing prices in the tank. Employment, good but weak market. Rents, decreasing. About 1995-1998, homes could be had for less than equivalent rent.

The OC bankruptcy, was not RE related. However, I wouldn’t be surpised to see a repeat. OC went BK, because everybody was trusting the magically investment powers of the treasurer to generate big fat profits to increase their budget. Unfortunately, like the MBSes, they vaporized on risk and much like Real Estate, the hammer fell because of leverage. See Robert Citron in the Wikipedia.

[no_such_reality]

OC, circa 1990 to 1998. Housing prices in the tank. Employment, good but weak market. Rents, decreasing. About 1995-1998, homes could be had for less than equivalent rent.

The OC bankruptcy, was not RE related. However, I wouldn’t be surpised to see a repeat. OC went BK, because everybody was trusting the magically investment powers of the treasurer to generate big fat profits to increase their budget. Unfortunately, like the MBSes, they vaporized on risk and much like Real Estate, the hammer fell because of leverage. See Robert Citron in the Wikipedia.

[Author]

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