BREAKING: Credit card delinquency rates at Discover Financial, the 6th largest credit card issuer in America, just spiked to 2008 levels, according to Reventure. At Discover, credit card delinquency rates in Q1 2024 jumped from 4.7% to 5.7% in Q1 2024. To put this in perspective, delinquency rates going into 2022 were at just 1.5%. This means that delinquency rates are nearly 4 TIMES higher than they were just 2 years ago. Americans are still spending at record levels even as savings have been depleted. Are we in a credit card debt bubble?
As our followers have seen, we have been worried about this for years. Americans have been "fighting" inflation with credit card debt that has a 25% interest rate. It's finally starting to catch up with us. Follow us @KobeissiLetter for real time analysis as this develops.
@KobeissiLetter $14 Burgers and Burritos will do that, $6 Gasoline, Rent 40% of your income will do that. I can go on forever
@KobeissiLetter Sadly, an economic crash may help with inflation, but war will cause more Inflation. No one talks about the effects of decades of proxy war inflation and COVID-19. There will be no rate cuts for a while; that won't help anyway. Whatever happened to the Gold standard?
@KobeissiLetter Must be that "strong" economy some keep talking about...
@KobeissiLetter But apparently, the economy is fine and people are doing well financially...