Credit card delinquencies back at mid-2007 levels. Let that sink in.
Everyone's talking about how strong the economy is, yet consumer stress is flashing pre-GFC warning signs. And we're supposed to believe higher rates will fix this?
The math doesn't work. Higher rates = higher debt service = more delinquencies, not less. We're watching real-time pressure on the consumer, and it's not pretty.
This is the kind of divergence that matters when you're managing risk. Strong headline GDP doesn't mean much if the average household is maxed out and missing payments. Keep an eye on this — it's a leading indicator, not a lagging one.
Everyone's talking about how strong the economy is, yet consumer stress is flashing pre-GFC warning signs. And we're supposed to believe higher rates will fix this?
The math doesn't work. Higher rates = higher debt service = more delinquencies, not less. We're watching real-time pressure on the consumer, and it's not pretty.
This is the kind of divergence that matters when you're managing risk. Strong headline GDP doesn't mean much if the average household is maxed out and missing payments. Keep an eye on this — it's a leading indicator, not a lagging one.
