by BoatSurfer600
This recession will turn into a depression real quick.
“Defaults and delinquencies could spike among young adults who’ve racked up credit card debt, thanks to tighter financial conditions that are starting to impact how US consumer spend, Moody’s Analytics said.
In a note on Tuesday, Moody’s pointed to higher interest rates, which have raised the cost of borrowing and slowed down consumer credit usage. Outstanding balances across all consumer credit products grew just 0.2% in May, compared to 5.3% in May of last year. Meanwhile, accounts grew at a rate of just 0.1%, compared to 2.8% a year ago.
But higher rates potentially spell trouble for young adults, some of whom have already racked up credit card debt to offset the effects of inflation on their savings.”
TOP THREE CAUSES OF THE GREAT DEPRESSION:
1. Vulnerabilities in the Global Economy
2. Financial Speculation
3. Blunders by the Fed
Glad these aren’t an issue today 😬😬t.co/t10U35C1oH
— Amy Nixon (@texasrunnerDFW) June 27, 2023
via cnbc:
“Costco is taking a page from Netflix’s book.
The retailer is cracking down on people sneaking into its clubs and trying to shop with other people’s membership cards, it said Tuesday.
Costco said it has always asked shoppers for their membership cards at the cash registers when they check out. Now, it is also requesting to see cards with a photo at self-checkout registers — and to view a photo ID if a shopper’s membership card has no picture.
Inflation seems to be stickier than most anticipated
Core PCE still hovers around 5%, levels last seen in the 1980s pic.twitter.com/aJCI0Jx0wb
— Game of Trades (@GameofTrades_) June 27, 2023
A U.S. recession is coming this year, HSBC warns — with Europe to follow in 2024