Unemployment = Higher Loan Delinquency

OK....Let me understand.
We have soaring unemployment correct?
We have a shrinking economy correct?
We have credit lines that have been cut in half correct?

If you have not been living in a cave or watching Realty TV exclusively for the last 9 months, you would understand that the above 3 statements all are resounding and depressingly true.

Soaring U.S. unemployment and a shrinking economy drove delinquencies on credit card debt and
home equity loans to all-time highs in the first quarter as a record number of cash-strapped consumers fell behind on their bills. Delinquencies on the value of all card debt soared to a record 6.60 percent from 5.52 percent in the fourth quarter as more cardholders relied on plastic to meet day-to-day living expenses.

We have not even scratched the surface on Bank HELOC exposure.

Late payments on home equity loans rose to 3.52 percent from 3.03 percent, and on home equity lines of credit climbed to 1.89 percent from 1.46 percent

Thew biggest driver is job losses. When people lose their jobs or work fewer hours, it makes it much harder for them to pay the bills, Unfortunately, we're going to see higher job losses in the next year, and I expect elevated delinquencies that frankly losses the banks cant sustain or taken adequate reserves for.

Bad Data Points:

-Borrowers are struggling as the nation's jobless rate sits at a 26-year high of 9.5 percent, with 6.5 million jobs having disappeared since the recession began in December 2007.

-U.S. consumers ended March with $939.6 billion of revolving credit outstanding. Consumers (2/3 of GDP) rely on Credit to pay normal living expenses until they find a job, which has become longer then expected, also credit card companies are cutting credit limits.

-According to Case-Shiller, home prices are down 32.6 percent from their peak in 2006, with more pain further to go in most 20 large metropolitan areas.

-Delinquencies rose to 3.01 percent from 2.03 percent on direct auto loans, to 3.70 percent from 2.96 percent on mobile home loans, to 3.47 percent from 2.88 percent on personal loans, and to 1.52 percent from 1.38 percent on recreational vehicle loans.

After all of these bad data points, The American Bankers Association (ABA) has the nerve to tell us that the recession is ending this quarter?