Profit from the Credit Crunch

It was mid-morning in San Francisco, started when my phone rings in the office. Our new client has been on the track. Were $ 100,000,000 an increase of capital, and wanted to work on the deal. My heart pounded as CFO explained the details of the transaction. Then he had a bomb.

We were starting tomorrow ... New York City.

I was about 55 minutes before the next flight left. If I lost, I'd be red eyes, and late for the meeting. MarioAndretti Speed taxi driver took me to my house for a change of clothes and then to the airport. I ran through the terminal. The last to board, closed the door behind me when I stepped on the plane. Then the real fun began.

The taxi to the airport emptied my wallet, and New York Cabs do not take credit cards. After explaining my situation to the hotel's concierge, chuckled plan. I blushed with shame when he paid me a taxi. A few minutes later, afterFinding an ATM, I returned to the bouncer and contains a great tip.

From that experience, I always try to cash them. However, I prefer most of the expenses incurred in connection with a credit card. It 's easier to follow and more convenient driving time.

I am not alone.

Millions of consumers in America have cash and credit cards and rely completely waived on credit. These days you can download almost anything you want. Happy Meal at McDonald's, gas for cars, food, coffee at Starbucks ... thatneeds money, if you have a credit card.

But things begin to change. Many Americans have some surprises in the mail this month. Credit card companies are cutting credit limits and interest rates doubled. And many people have no idea why.

Here's how and why you may be able to benefit.

Credit card companies have to implode the subprime mortgage market and explode foreclosure rates observed. Consumer credit is risky in times of recession and companies are beginninghear. In December of this year funds more than 60 days past due a huge increase of 18%.

This is obviously not good for the economy or the credit card companies.

If consumers have trouble paying loans, credit cards are sure to be next. Capital One, with more than 50 million cardholders, has already announced a drop in profits last quarter. The reason? Losses on credit cards. The stock has fallen 39% from a peak of about $ 83 to about $ 50.

ClearThese companies are in the sights of this square problem.

American Express (AXP), Discover Card (DFS), Bank of America (BAC) and Capital One (COF) are all major issuer of consumer credit. I think that some credit card stocks are lower tip. The bad news is displayed, highlighted in the next 3-4 months of problems with consumer credit.

One way to profit from this bad news waiting to buy Capital One is set as a short-term trading.

learnnationalbankofamerica