Amidst the economic tumult, a staggering figure looms large—the nation’s credit card debt surges past an alarming $1.1 trillion mark, shackling consumers with interest rates soaring above 25%. This financial burden weighs heavily on households, threatening their financial stability.
As the relentless march of inflation erodes purchasing power, savings rates plummet to a mere 3.2%, the lowest recorded since November 2022. This precipitous decline underscores the grim reality facing American households, grappling with diminishing resources amidst rising costs.
Against this backdrop, spending outpaces income growth, exacerbating the strain on already stretched budgets. In a concerning trend, credit card delinquencies rise, with almost 3.5% of balances at least 30 days past due, the highest level in the data series since 2012, up by approximately 30 basis points from the previous quarter.
The erosion of savings and the escalation of credit card debt paint a dire picture of the consumer landscape, where financial resilience is tested to its limits. As the economy teeters on the brink of crisis, these numbers serve as a stark reminder of the urgent need for sustainable solutions to alleviate the burden on struggling households.
People are in credit card debt up to their eyeballs!
— Iron Sharpens Iron Trading (@ISITrading2717) May 1, 2024
EXTREMELY ALARMING 🚨
The Downfall Of The US Economy:
– Dollar Tree closing 600 stores this year
– CVS closing 900 stores through the end of this year
– Walgreens closing a 150 stores
– Outback Steakhouse has already closed 40 of its restaurants
– UPS is cutting 12,000 jobs in… pic.twitter.com/nSGY5Qudt2— Wall Street Apes (@WallStreetApes) May 1, 2024
BREAKING: CVS Pharmacy stock, $CVS, crashes 13% after posting a massive earnings miss and lowering guidance.
CVS' net income fell to $1.12 billion in Q1 2024, down from $2.14 billion in Q1 last year.
That's a near 50% DROP in their first quarter net income year-over-year.
CVS… pic.twitter.com/eT4ymohmxg
— The Kobeissi Letter (@KobeissiLetter) May 1, 2024
WHAT CORPORATE EXECUTIVES ARE SAYING ABOUT THE US ECONOMY
Happy Fed Day! In today's newsletter, I looked at what execs from McDonald's, Starbucks, Trane, Amazon etc. saying.
Big themes: Consumer slowing, capex booming, inflation normalizing,wages rising, and HVAC HVAC HVAC pic.twitter.com/zCayHp8yl6
— Joe Weisenthal (@TheStalwart) May 1, 2024
U.S. Consumer Confidence fell to the lowest level since July 2022 pic.twitter.com/rImYtrw0h4
— Win Smart, CFA (@WinfieldSmart) May 1, 2024
"Confidence retreated further in April, reaching its lowest level since July 2022 as consumers became less positive about the current labor market situation, and more concerned about future business conditions, job availability, and income."@Conferenceboard pic.twitter.com/Q0GIF5SxSm
— Daily Chartbook (@dailychartbook) May 1, 2024
JUST IN: Savings rates in the US fall from 3.5% to 3.2%, the lowest since November 2022, according to Zerohedge.
Over the last year, savings rates have fallen from 5.2% to 3.2%.
All as credit card debt continues to push above a record $1.1 trillion with 25%+ interest rates.… pic.twitter.com/lXJxW4oBsl
— The Kobeissi Letter (@KobeissiLetter) April 26, 2024