So the patient (economy) is healthy, yet drugs (rate cuts) are being administered, just in case….
Economies are slowing despite continued stimulative government overspending, yet the masses seem to believe that all is good.
Something seems off here…— GEO.P 🇺🇸 (@WhydaInsanity24) October 2, 2024
Bullish sentiment is through the roof:
US equity futures positioning by investors excluding market-makers just hit a net long of ~$290 billion, the most on record.
Since the beginning of the year, net long positioning has more than DOUBLED.
This is also twice as high as during… pic.twitter.com/blWFQ98n2e
— The Kobeissi Letter (@KobeissiLetter) October 2, 2024
#Silver has closed above $30 in the third quarter of 2024. However, the overall technical formation is very bullish, and prices will likely shoot higher—more explanation in this article. https://t.co/zuNDaYUBny
— Gold Predictors (@GoldPredictors) October 2, 2024
The alarming rise in the share of consumer debt deemed unlikely to be collected by banks has more than doubled over the past two years, reaching 3.0% in 2024. This figure represents the highest level seen in 13 years, highlighting the significant financial strain consumers are currently facing. Such a dramatic increase not only indicates personal financial difficulties but also raises questions about the overall health of the economy, as consumers struggle under the weight of persistent inflation and rising household debt.
Historically, during the Financial Crisis, the share of uncollectible consumer debt surged from 2.5% in 2007 to a staggering 6.1% in 2010. The current increase to 3.0% serves as a warning sign of ongoing economic challenges that could lead to deeper financial issues. With inflation continuously eroding purchasing power, many households are forced to rely more on credit to meet basic needs. This situation could lead to higher default rates and further economic instability if not addressed promptly.
Sources:
https://www.marketwatch.com/guides/banking/american-debt-2024/
https://www.newyorkfed.org/newsevents/news/research/2024/20240514