FED Warns Against Rising Delinquency Rates, Calls It A "Leading Indicator That Things Are About To Get Worse"

[1srelluc]

FED Warns Against Rising Delinquency Rates, Calls It A "Leading Indicator That Things Are About To Get Worse"

Austan Goolsbee, President of the Chicago Federal Reserve Bank, highlighted that consumer delinquencies are among the most worrisome economic indicators currently being monitored. His concerns now appear prescient as new data reveal a significant uptick in delinquency rates in the first quarter...

finance.yahoo.com

Austan Goolsbee, President of the Chicago Federal Reserve Bank, highlighted that consumer delinquencies are among the most worrisome economic indicators currently being monitored. His concerns now appear prescient as new data reveal a significant uptick in delinquency rates in the first quarter of 2024.

"If the delinquency rate of consumer loans starts rising, that is often a leading indicator that things are about to get worse," Goolsbee stated.

Recent figures from the Federal Reserve published last week confirm these fears, showing that aggregate delinquency rates have increased, "with 3.2% of outstanding debt in some stage of delinquency as of the end of March."

This marks a notable rise in financial distress among consumers.

The data indicates that the transition rates into delinquency have surged across all debt categories.

About 8.9% of credit card balances and 7.9% of auto loans have become delinquent annually. Although the transition rate for mortgages increased by 0.3 percentage points, it remains low by historical standards.

"In the first quarter of 2024, credit card and auto loan transition rates into serious delinquency continued to rise across all age groups," said Joelle Scally, Regional Economic Principal within the Household and Public Policy Research Division at the New York Fed. "An increasing number of borrowers missed credit card payments, revealing worsening financial distress among some households."

I don’t think Fed interest rates are out of hand. They are about where they should be.

Credit card rates on the other hand, should be considered predatory at this point. I remember when loan sharks charged 25% and it was considered a felony.

I’m not sure what they should be limited to, but in my mind anything over 15% is getting predatory.....35% is common with store cards now and Tractor Supply is charging 37.5%!

I somehow think that a lot of tax paying folks will get fucked for NOT being delinquent.

Just like millions got fucked for working their way through college and paying off their student loans.

 

[Votto]

FED Warns Against Rising Delinquency Rates, Calls It A "Leading Indicator That Things Are About To Get Worse"

Austan Goolsbee, President of the Chicago Federal Reserve Bank, highlighted that consumer delinquencies are among the most worrisome economic indicators currently being monitored. His concerns now appear prescient as new data reveal a significant uptick in delinquency rates in the first quarter...

finance.yahoo.com

Austan Goolsbee, President of the Chicago Federal Reserve Bank, highlighted that consumer delinquencies are among the most worrisome economic indicators currently being monitored. His concerns now appear prescient as new data reveal a significant uptick in delinquency rates in the first quarter of 2024.

"If the delinquency rate of consumer loans starts rising, that is often a leading indicator that things are about to get worse," Goolsbee stated.

Recent figures from the Federal Reserve published last week confirm these fears, showing that aggregate delinquency rates have increased, "with 3.2% of outstanding debt in some stage of delinquency as of the end of March."

This marks a notable rise in financial distress among consumers.

The data indicates that the transition rates into delinquency have surged across all debt categories.

About 8.9% of credit card balances and 7.9% of auto loans have become delinquent annually. Although the transition rate for mortgages increased by 0.3 percentage points, it remains low by historical standards.

"In the first quarter of 2024, credit card and auto loan transition rates into serious delinquency continued to rise across all age groups," said Joelle Scally, Regional Economic Principal within the Household and Public Policy Research Division at the New York Fed. "An increasing number of borrowers missed credit card payments, revealing worsening financial distress among some households."

I don’t think Fed interest rates are out of hand. They are about where they should be.

Credit card rates on the other hand, should be considered predatory at this point. I remember when loan sharks charged 25% and it was considered a felony.

I’m not sure what they should be limited to, but in my mind anything over 15% is getting predatory.....35% is common with store cards now and Tractor Supply is charging 37.5%!

I somehow think that a lot of tax paying folks will get fucked for NOT being delinquent.
Just like millions got fucked for working their way through college and paying off their student loans.

Now that people's savings have mostly been eradicated to try and survive Bidenomics, the Orange Blob can take over to be blamed.

 

[Toddsterpatriot]

Credit card rates on the other hand, should be considered predatory at this point. I remember when loan sharks charged 25% and it was considered a felony.

25% a month? A week?

 

[Harpy Eagle]

Seems a bit hard to get excited when they are well below historical norms

 

[Toddsterpatriot]

Seems a bit hard to get excited when they are well below historical norms

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Rising rates aren't a good economic sign.

 

[Harpy Eagle]

Rising rates aren't a good economic sign.

They are not a good sign, but in this case when you look at the context, it is not really a worrisome sign either.

The delinquency rates were abnormally low after COVID due to all the money the Govt handed out as well as the freeze on evictions and foreclosures

The rates are just now getting back to where they were before COVID. Did we have threads on here by you MAGA types lamenting what a bad sign it was back then?

 

[Toddsterpatriot]

They are not a good sign, but in this case when you look at the context, it is not really a worrisome sign either.

The delinquency rates were abnormally low after COVID due to all the money the Govt handed out as well as the freeze on evictions and foreclosures

The rates are just now getting back to where they were before COVID. Did we have threads on here by you MAGA types lamenting what a bad sign it was back then?

Did we have threads on here by you MAGA types lamenting what a bad sign it was back then?

How much did they increase back then?

 

[Harpy Eagle]

Did we have threads on here by you MAGA types lamenting what a bad sign it was back then?

How much did they increase back then?

Seems the level they are at is more important than what their increase was.

They were abnormally low after 2020 due to the actions of the Govt handing out money like candy.

But, it is to your benefit to freak out over every little thing as it might gain your beloved party one or two more votes, and nothing is more important than that.

 

[Toddsterpatriot]

Seems the level they are at is more important than what their increase was.

They were abnormally low after 2020 due to the actions of the Govt handing out money like candy.

But, it is to your benefit to freak out over every little thing as it might gain your beloved party one or two more votes, and nothing is more important than that.

Where did I freak out over credit card defaults doubling recently?
Where did I freak out over credit card defaults being higher than in a dozen years?
Where did I freak out over credit card defaults rising during Joe's "great" economy?

 

[Harpy Eagle]

Where did I freak out over credit card defaults doubling recently?
Where did I freak out over credit card defaults being higher than in a dozen years?
Where did I freak out over credit card defaults rising during Joe's "great" economy?

Tis the whole point of this thread.

 

[Toddsterpatriot]

Tis the whole point of this thread.

The whole point was your mischaracterization of my position?

Geez, even auto loans are going bad.
When an Obama guy is pointing out the warning signs, it can't be good for old Joe.

 

[Harpy Eagle]

When an Obama guy is pointing out the warning signs, it can't be good for old Joe.

and it seems that is all that matters.

 

[Toddsterpatriot]

and it seems that is all that matters.

When even the liberals start pointing out Joe's weaknesses.......

 

[Harpy Eagle]

When even the liberals start pointing out Joe's weaknesses.......

So, again...all that matters to you is that it is bad for Biden.

you do not care that people cannot make their payments, you do not care that cars might get repoed.

All this is just about it being bad for Biden so that your beloved party can win more votes.

 

[Toddsterpatriot]

you do not care that people cannot make their payments, you do not care that cars might get repoed.

It's very sad that Bidenflation has made it harder for people to survive Joe's economy.

 

[Harpy Eagle]

It's very sad that Bidenflation has made it harder for people to survive Joe's economy.

And then you prove me correct.

Thanks.

Have a great day.

 

[Toddsterpatriot]

And then you prove me correct.

Thanks.

Have a great day.

You are also sad that Bidenflation is making life difficult for ordinary Americans?

 

[Harpy Eagle]

You are also sad that Bidenflation is making life difficult for ordinary Americans?

Does not really move my meter either direction.

There are always people having a difficult time, this is no different.

When me and mine were in a difficult situation I was told by people of your political leaning that I need to buck up and work harder and make things better and not rely on anyone else.

So that is just what the wife and I did. If we did it, so can anyone else.

 

[1srelluc]

Does not really move my meter either direction.

There are always people having a difficult time, this is no different.

When me and mine were in a difficult situation I was told by people of your political leaning that I need to buck up and work harder and make things better and not rely on anyone else.

So that is just what the wife and I did. If we did it, so can anyone else.

Yet you spit in the face of those that advised you wisely. Typical leftist turncoat.