rising

The U.S. is dealing with rising Treasury yields and the risk of a credit crunch, China is facing a housing bubble burst, and Europe is on the edge of a recession and debt crisis.

If these problems in major economies collide, it could spell global financial disaster soon, and it feels like we need some urgent solutions, but we’re not getting them. On top of that, the recent Treasury bond auction didn’t go so well, which adds to worries about the U.S. debt piling up and how Wall Street …

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Obtaining credit will be “much harder”; Bankruptcies are rising at the fastest rate since the pandemic.

Obtaining credit will be “much harder” pic.twitter.com/Pd2gXm5mn3 — Win Smart, CFA (@WinfieldSmart) October 11, 2023 Rapid rate hikes have helped fuel an increase in company failures this year—and there’s probably more pain to come.  Bed Bath & Beyond is one of the more well-known brands to implode this year under the weight of, among other …

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America’s military’s fitness crisis: Alarm over rising obesity and number of ‘skinny fat’ recruits who can’t pass physical tests

The US military is fighting a fitness crisis brought by a growing number of obese troops and ‘skinny fat’ recruits who can’t pass fitness tests. Obesity rates among service members surged during COVID and recruiters are also confronted by a growing number of would-be soldiers who are simply too large, too weak or both. Top …

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Rising Rates Likely Hit Bank Balance Sheets in Quarter, Lenders need to pay up to keep depositors, pressuring earnings

From the WSJ: A surge in interest rates likely worsened unrealized losses on bonds and loans held by U.S. banks in the third quarter, further straining their balance sheets as they face pressure to pay more to keep depositors. Unrealized losses were a key cause of Silicon Valley Bank’s failure in March, which spurred other …

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It’s almost game over for the consumers and prices are still RISING.

It's almost game over for the consumers Excess savings from C19 have likely depleted Credit card debt has surpassed $1 trillion Interest rates on credit cards have crossed 20% Personal interest payments is over $500 billion Personal savings rate is at 3.9%, levels unseen… pic.twitter.com/QWoLR5qZwW — Bravos Research (@bravosresearch) October 2, 2023 Warning: Helicopter money …

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The cost of borrowing has increased significantly, and small firms are feeling the heat. Small businesses facing tough times with rising bankruptcies.

It's hard to see a case for interest rate cuts returning anytime soon. However, we continue to believe that rates will PAUSE for longer. Inflation to 2% remains the Fed's number one objective right now. Follow us @KobeissiLetter for real time analysis as this develops. — The Kobeissi Letter (@KobeissiLetter) October 2, 2023 As I've …

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A banking crisis is looming as banks lost $870 billion in deposits over the past 18 months, with unrealized losses on investments rising to nearly $550 billion in Q2 2023.

This liquidity strain might prompt banks to tighten lending, potentially making it more challenging for individuals and businesses to access credit. A record $870 billion of deposits have left banks over the last 18 months. This is the highest deposit flight since The Great Depression. The UAW strike, student loan payments & government employees furloughed …

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Interest rates are rising… and rising fast…

by John-Wetter-2310 To break it down: • Since May 2021, the average 30-year mortgage has tripled, going from 2.6% to 7.8% in just over two years. This also marks a 23-year high. • The 10-Year Note Yield rises to 4.59%, its highest level since October 2007 – remember what else was happening around 2007-2008? Attached …

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Many Americans are experiencing financial hardship due to the rising expenses of basic needs including housing, transportation, and credit card debt. Personal income fails to keep up with spending for three months.

With the median mortgage payment exceeding the cost of rent by $1,000 per month and average new car payments and used car loan interest rates reaching new highs, households are feeling the strain of increasing expenses. The milestone of $1 trillion in credit card debt, coupled with record-high interest rates of 25%, underscores the growing …

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The Perfect Storm Hits Big Banks: Tumbling Deposits, Rising Unrealized Losses, and Higher-for-Longer Interest Rates

Guest Post by Pam and Russ Martens at Wall Street on Parade.com: On March 30, 2022, two highly troubling events occurred: (1) Fed data showed that unrealized losses on available-for-sale securities at the 25 largest U.S. banks were approaching the levels they had reached during the financial crisis in 2008; and (2) the Fed simply …

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Government bonds are melting down… Bloomberg today: “Rates aren’t rising because of inflation, they’re rising because of the bond market”

This chart shows the Ten Year Yield where 40 = 4.0%. Currently at 4.65%. View post on imgur.com Bloomberg today: "Rates aren't rising because of inflation, they're rising because of the bond market" Looks like they finally woke up to the truth 👇 — Financelot (@FinanceLancelot) September 28, 2023 Rates aren't rising because of inflation… …

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Auto loan fraud is rising at a record pace

Auto loan fraud is rising at a *record pace*. But why? (hint: not what you'd expect) Frank McKenna, Chief Fraud Strategist at Point Predictive, explains in < 30 seconds: pic.twitter.com/WZDHvRdD71 — Car Dealership Guy (@GuyDealership) September 27, 2023

As rates have nearly tripled on most forms of debt, bankruptcy filings are rising. Nearly $270 billion of leveraged loans carry weak credit profiles and are potentially at risk of default

“Bankruptcy filings for companies with at least $10 million in liabilities are rising sharply. Since the Fed started raising rates in March 2022, bankruptcy filings have more than doubled. Corporations, individuals, and the government all got used to historically low interest rates. As rates have nearly tripled on most forms of debt, bankruptcy filings are …

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Mortgage Applications Increased 5.4% Last Week, But Purchase Demand Still Down -26% YoY And Refi Demand Down -29% YoY (Despite Mortgage Rate Rising To 7.31%)

by confoundedinterest17 Mortgage applications increased last week, despite the 30-year fixed rate edging back up to 7.31 percent – its highest level in four weeks. Mortgage applications increased 5.4 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending September 15, 2023. Last …

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Economic Warning Signs Flash: Impending Housing Bubble Implosion, Soaring Credit Card Rates, and Rising Bankruptcies Threaten Wealth

The current economic landscape raises concerns about the potential for significant wealth destruction when Housing Bubble 2.0, fueled by the Federal Reserve’s policies, eventually implodes. Housing Bubble 2.0: Recent data indicates that the implosion of Housing Bubble 2.0 is gaining momentum, with U.S. housing starts falling by a substantial 11.3%. This decline underscores the vulnerability …

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Due to record-high levels of debt accumulation across sectors, rising interest rates, and inflation, the current economic situation is under threat of becoming unsustainable.

Record-High Household Debt: The fact that household debt in the U.S. has reached $17.1 trillion is alarming. High levels of household debt can strain individuals and families, making it difficult for them to manage their finances and save for the future. Mortgage Debt: The record $12.0 trillion in mortgage debt indicates a growing burden on …

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Most people are broke and they can’t borrow… US household debt reached a record $17.1 trillion despite of rising credit rejections, driven by a desire to combat inflation.

Despite credit rejections rising, debt levels are skyrocketing. Total US household debt just hit a record $17.1 trillion and is expected to rise again this quarter. People are using debt to "fight" inflation. Follow us @KobeissiLetter for real time analysis as this develops. — The Kobeissi Letter (@KobeissiLetter) September 11, 2023 At a time when …

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Rising Oil Prices Might Be What Tips US Into Recession As Biden Drains The Strategic Petroleum Reserve (Crude Oil Reserves Lowest Since 1985)

by confoundedinterest17 Its hard to watch Biden and The Progressive Greens destroy the enegy security of this great nation. Biden is draining the Strategic Petroleum Reserve, probably in a misguided attempt at ensuring we never go back to abundent petroleum again. Crude oil inventories are now the lowest since 1985. Authored by Simon White, Bloomberg …

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US Beginning Credit Super Cycle (Bidenomics = Inflation, Rising Debt, Rising Delinquencies) Mortgage Rates UP 158% Under Bidenomics

by confoundedinterest17 Thanks to Bidenomics, code for massive Federal spending on green energy initiatives and payoffs fo large donors, we have agonizing inflation and consumers are borrowing more and more to cope with inflation. And with the increased use of debt comes …. drumroll … delinquenices! Let’s start with mortgage loans, the overall delinquency rate …

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Rising Unemployment: A False Hope for Lower Interest Rates?

by bitkogan The uptick in unemployment to 3.8% fits nicely into this week’s trend of “bad news is good news.” While the rise is largely due to a revised participation rate, the key takeaway is that it represents yet another piece of negative news. The market has been eagerly anticipating such developments, hoping they might …

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Landlords with US$1.2 trillion of debt face rising default risks

via bullsnbears: ABOUT $1.2 trillion of debt on US commercial real estate is “potentially troubled” because it’s highly leveraged and property values are falling, according to Newmark Group. Offices are the biggest near-term problem, accounting for more than half of the US$626 billion of at-risk debt that’s set to mature by the end of 2025, …

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Shoplifting out of control – Rising theft has come with higher credit card debt and declining US savings.

JUST IN: Target, $TGT, says stores have seen a 120% increase in theft involving violence the first 5 months of 2023. Earlier this year, Target said they expect to lose $1.3 BILLION due to theft in 2023. This is up $500 million from theft losses in 2022. Rising retail theft is… pic.twitter.com/Xav6ZxdzY7 — The Kobeissi …

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Baffled! Cancer rates in people younger than 50 are rising, new study finds. Doctors don’t yet know why.

Rates of colorectal cancer have been increasing in young people over the past few years — and have gotten a lot of attention in the process. But disturbing new research finds that rising cancer rates in young people aren’t limited to colorectal cancer. The study findings, which were published in JAMA Network Open, “build on data that’s …

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Minutes of the Federal Open Market Committee, July 25-26, 2023: “Various participants commented on risks that could affect some banks, including unrealized losses on assets resulting from rising interest rates, significant reliance on uninsured deposits, and increased funding costs.”

by Dismal-Jellyfish Source: https://www.federalreserve.gov/monetarypolicy/fomcminutes20230726.htm Developments in Financial Markets and Open Market Operations: The manager turned first to a review of developments in financial markets over the intermeeting period. Market participants interpreted data releases as generally demonstrating economic resilience and a further easing of inflation pressures. The market-implied peak for the federal funds rate rose in response …

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Energy stocks are 5% below highs, indicating oil’s potential return of 48%, impacting Fed policy and financial markets. Rate hikes probability decreases, but odds of rate cuts drop, with no cuts until May 2024.

Energy stocks are only 5% away from recent highs. If historical correlations matter, it is hard to believe oil won't follow the same path. That alone would imply a 48% return from its current levels. As a crucial contributor to inflation, rising energy costs could have a… pic.twitter.com/fBZ60dhWlO — Otavio (Tavi) Costa (@TaviCosta) August 11, …

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Yellen calls rising credit card debt the sign of a strong consumer. No, Janet, it means tapped out consumers are sinking further into debt they can’t possibly repay.

The US has $17.1 trillion in household debt, $12.0 trillion in mortgages, $1.6 trillion in auto loans, $1.6 trillion in student loans, and $1.0 trillion in credit card debt. pic.twitter.com/xU9iQN2f5f — MapleMAGA 🇨🇦🇺🇸 (@MapleMAGAw5) August 8, 2023 US Total Household Debt Hits an All-Time High of $17 Trillion; Credit Card Debt Also Sets New Record …

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MOODY’S DOWNGRADES 10 U.S. BANKS, WARNS OF POSSIBLE CUTS TO OTHERS.

Moody’s cuts US banks due to rising funding costs and Rising risk tied to Commercial Real Estate (CRE) loans Moody’s Investors Service hs lowered credit ratings for 10 small and midsize US banks and said it may downgrade major lenders including U.S. Bancorp, Bank of New York Mellon Corp., State Street Corp., and Truist Financial …

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UK house prices drop by most since 2009 amid rising interest rates (Housing Bubble 2.0 is bursting)

The UK housing market sees weak activity caused by rising interest rates, pushing mortgage rates above 6 percent for home buyers and existing mortgagors looking to refinance. British house prices fell by the most since 2009 in the 12 months to July, according to mortgage lender Nationwide, as the drag from rising interest rates on …

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