The collapse in the Producer Price Index (PPI) signifies a critical shift, as companies find themselves unable to command exorbitant prices from customers, leading to a significant impact on their profit margins. The era of making extraordinary profits and refinancing at 0% appears to be coming to an end, exacerbated by the Federal Reserve’s decision not to purchase their risky bonds. Today’s PPI data suggests that profit margins are likely on a downward trajectory, amplifying concerns about financial stability. Adding to these worries, the New York Fed’s latest Household Debt and Credit report reveals a concerning uptick, with nearly 6% of Americans significantly behind on credit card payments, signaling potential financial strain for households. The convergence of these factors paints a challenging economic landscape with implications for both businesses and consumers alike.
PPI collapse means the companies can not charge the insane monies to customers anymore.
They can’t make insane profits any more.
They can’t refinance at 0% any more.
And FED won’t buy their junk bonds.
This is bullish for S&P500 ?
— Emini Tic (@TicTocTick) November 15, 2023
Margins are likely heading lower based on today's PPI pic.twitter.com/96CNVGrKAZ
— Michael J. Kramer (@MichaelMOTTCM) November 15, 2023
The headline pic.twitter.com/Tqj2Oj5qS2
— 🅰🅻🅴🆂🆂🅸🅾 (@AlessioUrban) November 15, 2023
Americans who were seriously late in paying their credit card balances – by at least 90 days – rose to nearly 6% the last quarter, according to the New York Fed's latest Household Debt and Credit report.
— unusual_whales (@unusual_whales) November 15, 2023
Help me out with this chart, is Mike Wilson forecasting EPS to drop 10% or to grow 2% next year? pic.twitter.com/lJjMhYchti
— Michael A. Arouet (@MichaelAArouet) November 15, 2023
85% of Americans in October said now is a bad time to purchase a house because of high home prices and high mortgage rates, an all time high, per Fannie Mae.
— unusual_whales (@unusual_whales) November 15, 2023
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