Yesterday the Federal Reserve made history by holding its first ever press conference. The goal of chairman Ben Bernanke was to add insight into the central banks thinking amid its tarnished reputation due to the recent recession.
Of note in the conference was the central banks outlook on unemployment. They forecast unemployment to finish 2011 between 8.4% to 8.8%, and remain relatively high for the next several years finishing 2012 between 7.6% to 7.9% and 2013 in the low 7% range.
Since there is a close correlation between the unemployment rate and the credit card charge off rate, it can be reasonably expected from the feds comments that banks will continue to suffer large losses going forward ensuring a steady stream supply for us to take advantage of.