As Consumers Are Squeezed, Credit Card and Auto Loan Delinquencies Exceed Pre-COVID-19 Levels

References:https://edition.cnn.com/2023/08/10/economy/credit-card-car-loan-pay-failure-pre-covid/index.html

>Based on household debt data released by the New York Fed earlier this week, according to a Moody's report, the new credit card delinquency rate in the second quarter rose to 7.2% from 6.5% in the first quarter.

>The good news from Moody's report is that fewer Americans are falling behind on their mortgage payments.

New mortgage delinquencies have increased slightly over the past year but remain well below pre-COVID-19 levels. Moody's expects mortgage delinquencies to reach pre-pandemic levels in 2024.

It seems like an article that heavily headlines delinquencies, but is it true?

So, as I was personally curious, I'll summarize the above article, including information from Fred.

Since the Lehman Shock occurred in September 2008, it's obvious from this that individual loan delinquency rates are leading everything else.

What's concerning is that the delinquency rate on business loans in current operations hasn't risen significantly.
Perhaps when this business loan delinquency rate starts to rise, something big might happen.

The following is a post from 4chan.

China's Bidenomics is destroying the US in real-time by a DNC supported by a Chinese-owned Trojan horse Anonymous 08/11/23(Fri) 01:59:11 No.1200738▶>>1200743
https://www.cnn.com/2023/08/08/econ omy/us-household-credit-card-debt/i ndex.html

August 8, 2023

>Americans' credit card debt levels have reached a new, but undesirable, milestone: For the first time ever, they've surpassed $1 trillion, according to data released Tuesday by the Federal Reserve Bank of New York.

>Credit card balances surged by $45 billion (nearly 4.6%) in the second quarter, reaching $1.03 trillion, according to the New York Fed's latest quarterly report on household debt and credit.

>Earlier Tuesday, Bank of America reported that more people are tapping into their 401(k) accounts due to financial hardship. The number of people who made hardship withdrawals in the second quarter surged to 15,950 from the first three months of this year, a 36% increase compared to the second quarter of 2022.
>>

Anonymous 08/11/23(Fri) 02:00:29 No.1200739▶>>1200743
US Senator Tom Carper and other lawmakers are betting against the US economy because they have insider information as members of the Finance Committee and other committees that have insider information related to the true health of the economy.

>https://markets.businessinsider.com/news/etf/senator-on-finance-commi ttee-places-bet-on-market-downturn- a -look-at-his-bearish-etf-purchase- in -july-1032509035

Currently, 40% of Americans are in a debt spiral that can only end in default. This is the greatest depression.

> 35 percent of Americans who use credit cards believe at least one of their cards will be maxed out by the end of the year.
> An additional 38% say they are using credit cards to pay for expenses they previously did not use cards for.
> Quicken notes that this could lead many Americans into a debt cycle.
> Nearly two-thirds of already employed Americans (62% total) say they are considering a side hustle in the next six months (47%) or are currently looking for a new job in the next six months (31%).
> 31 percent of Americans say they would have to cut spending in the second half of the year if the student loan payment freeze were lifted (which, unfortunately, it was).
> 47% of Americans earning $150,000 or more annually plan to diversify their funds across more institutions, fearing further financial collapse (compared to 18% of Americans with household incomes under $50,000).

>https://thefintechtimes.com/americ ans-are-at-risk-of-an-inescapble-de bt-cycle-due-to-credit-card-reliianc e-finds-quicken/
>>

Anonymous 08/11/23(Fri) 02:01:36 No.1200740▶>>1200743
US credit rating downgraded for the first time since 2008

>https://www.fitchrateds.com/resea rch/sovereigns/fitch-downgrades-uni ted-states-long-term-rateds-to-aa- from-aaa-outlook -stable-01-08-2023

US credit card debt surpasses $1 trillion for the first time
Increased by nearly $18 billion between May and June 2023 alone
Due to the extremely difficult economic situation in the US, American families are forced to use credit cards to purchase groceries and other necessities, leading them into a debt spiral that will only result in default.

40% of Americans will have 1-3 credit cards maxed out by December 1, 2023. They have no expectation of repayment in 6 months.
They will be able to max out 1-3 more credit cards.
You do the math.

>https://thehill.com/homenews/41423 02-consumer-debt-climbs-as-credit-c ard-debt-surpasses-1-trillion/

In reality, I feel that things will become quite precarious if the second wave of inflation, which is already starting to be priced in, arrives.

What do you all think?

That's all.