"Credit card losses are rising at the fastest pace since the Great Financial Crisis"

[PaceAdvantage]

Bidenomics!

https://www.cnbc.com/2023/09/22/cred...al-crisis.html

Credit card companies are racking up losses at the fastest pace in almost 30 years, outside of the Great Financial Crisis, according to Goldman Sachs.

Credit card losses bottomed in September 2021, and while initial increases were likely reversals from stimulus, they have been rapidly rising since the first quarter of 2022. Since that time, it’s an increasing rate of losses only seen in recent history during the recession of 2008.

It is far from over, the firm predicts.

Losses currently stand at 3.63%, up 1.5 percentage points from the bottom, and Goldman sees them rising another 1.3 percentage points to 4.93%. This comes at a time when Americans owe more than $1 trillion on credit cards, a record high, according to the Federal Reserve Bank of New York.

[PaceAdvantage]

mostpost right now:

[azeri98]

It's not just Bidenomics the run of zero interest rates for so long under both parties is what caused this . Free money can't be sustained for that long . Chickens are coming home to roost

[horses4courses]

I've been concerned about this for some time.
It's the biggest threat to an otherwise strong economy.

[ReplayRandall]

Originally Posted by horses4courses

I've been concerned about this for some time.
It's the biggest threat to an otherwise strong economy.

In what country is this "strong economy" you're referring to??

[horses4courses]

Originally Posted by ReplayRandall

In what country is this "strong economy" you're referring to??

Care to name another one that is stronger?
I'll wait.......

[ReplayRandall]

Originally Posted by horses4courses

Care to name another one that is stronger?
I'll wait.......

You didn't answer my question...Try again.

[fast4522]

Wait until the fun begins.

YouTube

[davew]

Originally Posted by horses4courses

I've been concerned about this for some time.
It's the biggest threat to an otherwise strong economy.

if the economy is so strong, why are people having trouble paying minimums on their maxed out cards?

[azeri98]

Originally Posted by davew

if the economy is so strong, why are people having trouble paying minimums on their maxed out cards?

It remains strong because people continue to live beyond their means. Buying items on credit with money that they don't have because they can't stop buying regardless of their credit. How many people who can't afford it will be purchasing the new Iphone this week?

[thaskalos]

When they tell us that the "economy is strong", it doesn't mean that the people are more well off...it just means that they are spending money at a rapid pace. Soon they will be telling us how much people will be spending over the Christmas holidays. If the spending numbers are high, then the "economy is strong"... but if the spending numbers are low, then the economy will be "floundering". The consumer credit card debt is just an afterthought that seldom gets talked about. Why depress people when you don't have to.

[tbwinner]

Can't spend if your limits are maxed out. Will be an interesting holiday season.

I wonder if people are taking out more 2nd mortgages or Helocs to tap into home values rising.

This says HELOC originations are skyrocketing: https://www.mpamag.com/us/specialty/...%20was%2031%25.


Student loan repayments are back too. Trouble is brewing.

Biden Stimulus before or after Feb 2024?

[Tom]

Originally Posted by azeri98

It remains strong because people continue to live beyond their means. Buying items on credit with money that they don't have because they can't stop buying regardless of their credit. How many people who can't afford it will be purchasing the new Iphone this week?

This extravagant spending has to stop/
No one needs 3 meals a day, and heat in your home. You can buy a blanket for 10 bucks, and why can't you walk 30 miles to work every day?

[Tom]

Originally Posted by ReplayRandall

In what country is this "strong economy" you're referring to??

His avatar 'splains it all.

Lowered expectations,

[Inner Dirt]

Originally Posted by azeri98

It remains strong because people continue to live beyond their means. Buying items on credit with money that they don't have because they can't stop buying regardless of their credit. How many people who can't afford it will be purchasing the new Iphone this week?

A lot of people who have used credit cards recently to make ends meat.
I do agree some of them spend every dime they get their hands on, and leave no room for error. I have put people in for nice raises when working for the man and given them when running my own business. You would not believe how many of them start shopping for new boats and vehicles almost immediately. On the other hand the cost of basic necessities has went through the roof. The numbers coming out of the White House are a joke.


Prices here keep going up at alarming rates. I am a numbers person so I may notice more than most. I can remember people's phone numbers from 40 years ago. Store brand diet soda that was 89 cents for 2 liters when Biden was elected is now $1.49, a 67% increase, the canned soda has doubled.
One of the vendors I use for shop supplies keeps a record of purchases going back 5 years, no need to rely on memory there for how much items have increased. A lot of my purchase orders are reorders of the exact same thing,
freight charges have doubled.



Between everything I spend money on in personal items, and business items for which I have to eat the cost I am spending $500-$700 a month more, for just me and a cat. So if before I was saving $400 a month and now put $100-$300 on a credit cards does that make me irresponsible?