Santa’s Reindeer: Not as Sprightly as They Used to Be

For indispensable reporting on the coronavirus crisis, the election, and more, subscribe to the Mother Jones Daily newsletter.


After lugging a sleigh full of Wiis and Hannah Montana dolls across the sky, the reindeer are due for their annual checkup. Dasher, Dancer, Prancer and Vixen–otherwise known as Discover, Diners Club, PayPal and Visa–have been pulling increasingly huge loads in recent years, and this year was no exception. On Tuesday MasterCard Advisors reported that US holiday sales were up 3.6 percent from 2006. That our plastic reindeer carried such a heavy load through the blizzard of a mortgage crisis is a testament to the power of Rudolph and his nose of red. But is the Red-Nosed Reindeer running his team into the ground?

What’s clear is that consumer debt is taking a red nose dive. This week the AP reviewed financial data from the nation’s largest card issuers and found a steep rise in delinquencies among accounts more than 90 days in arrears. Some of the nation’s biggest lenders reported the accounts have ballooned more than 50 percent compared to a year ago. Overall, defaults jumped by 18 percent.

Rudolph (and Santa) really are to blame for a lot of this. For most of this year consumers seemed to be coming to their senses. The national savings rate was positive for most of 2007, for the first time in years, but then it jumped back to negative leading up to the holidays. For the time being we’re once more following Rudolph back to 1929. His flashing red nose is certainly comforting, but it’s also why people used to call him names, and wouldn’t let him play in any reindeer games.

FACT:

Mother Jones was founded as a nonprofit in 1976 because we knew corporations and the wealthy wouldn't fund the type of hard-hitting journalism we set out to do.

Today, reader support makes up about two-thirds of our budget, allows us to dig deep on stories that matter, and lets us keep our reporting free for everyone. If you value what you get from Mother Jones, please join us with a tax-deductible donation today so we can keep on doing the type of journalism 2020 demands.

FACT:

Mother Jones was founded as a nonprofit in 1976 because we knew corporations and the wealthy wouldn't fund the type of hard-hitting journalism we set out to do.

Today, reader support makes up about two-thirds of our budget, allows us to dig deep on stories that matter, and lets us keep our reporting free for everyone. If you value what you get from Mother Jones, please join us with a tax-deductible donation today so we can keep on doing the type of journalism 2020 demands.

We Recommend

Latest

Sign up for our free newsletter

Subscribe to the Mother Jones Daily to have our top stories delivered directly to your inbox.

Get our award-winning magazine

Save big on a full year of investigations, ideas, and insights.

Subscribe

Support our journalism

Help Mother Jones' reporters dig deep with a tax-deductible donation.

Donate