Plastic Joe

[snoughnut]

Booming Bidenomics !!! 

 

ECONOMY

Credit card balances jumped in the second quarter and are above $1 trillion for the first time

PUBLISHED TUE, AUG 8 202311:00 AM EDT

Jeff Cox@JEFF.COX.7528@JEFFCOXCNBCCOM

 

KEY POINTS

• Total credit card indebtedness increased by $45 billion in the April-through-June period, an increase of more than 4% and just above $1 trillion.
• The Fed’s measure of credit card debt 30 or more days late rose to 7.2% in the second quarter, the highest rate since the first quarter of 2012.

 

 

Jose Luis Pelaez Inc | Digitalvision | Getty Images

Americans increasingly turned to their credit cards to make ends meet heading into the summer, sending aggregate balances over $1 trillion for the first time ever, the New York Federal Reserve reported Tuesday.

Total credit card indebtedness increased by $45 billion in the April-through-June period, an increase of more than 4%. That took the total amount owed to $1.03 trillion, the highest gross value in Fed data going back to 2003.

 

The increase in the category was the most notable area as total household debt edged higher by about $16 billion to $17.06 trillion, also a fresh record.

As card use grew, so did the delinquency rate.

The Fed’s measure of credit card debt 30 or more days late rose to 7.2% in the second quarter, up from 6.5% in Q1 and the highest rate since the first quarter of 2012 though close to the long-run normal, central bank officials said. Total debt delinquency edged higher to 3.18% from 3%.

“Credit card balances saw brisk growth in the second quarter,” said Joelle Scally, regional economic principal within the Household and Public Policy Research Division at the New York Fed. “And while delinquency rates have edged up, they appear to have normalized to pre-pandemic levels.”

Fed researchers say the increase in balances reflects both inflationary pressures as well as higher levels of consumption.

 

The central bank also said demand for card issuance has eased, which has come in conjunction with banks saying that credit standards are tightening.

Debt across other categories showed only modest changes. Newly originated mortgages rose by $393 billion though total mortgage debt nudged lower to just over $12 trillion. Auto loans increased by $20 billion to $1.58 trillion and student loans decreased to $1.57 trillion ahead of the lifting of the moratorium on payments.

[Mainecat]

Sounds awful I’m sure the republicans in congress are happy.

[racer254]

Inflation caused by electing a 40+ year swamp creature.  Everyone knew it would happen.  Apparently 81 million votes said it was a "wanted" thing.

[spin_dry]

I buy everything I possibly can via credit card. 

[SSFB]

Bootstraps, get some!!!

[steve from amherst]

21 minutes ago, SSFB said:

Bootstraps, get some!!!

Let me  guess, " fuck it, throw it on the card "?

[EvilBird]

4 hours ago, spin_dry said:

I buy everything I possibly can via credit card. 

Explains why you live in a bus 

[Rigid1]

4 hours ago, spin_dry said:

I buy everything I possibly can via credit card. 

I've been doing the same and just pay off weekly, the  rewards make and save me a good chunk of money per month 

[snoughnut]

1 hour ago, SSFB said:

Bootstraps, get some!!!

Joe tried to loosen those bootstraps with Student Loan Forgiveness but he lied...............Bootstraps it is you little suckers!!!   

[Snake]

If you get something free or money back, you are the product.

[SSFB]

1 hour ago, steve from amherst said:

Let me  guess, " fuck it, throw it on the card "?

I don’t have any CC debt so

[toslow]

6 minutes ago, SSFB said:

I don’t have any CC debt so

I call bullshit to this, the world quit running on cash 20 yrs ago or longer 

Edited August 9, 2023 by toslow

[SSFB]

1 minute ago, toslow said:

I call bullshit to this, the world quit running on cash 20 yrs ago or longer 

No debt meaning paid off in full every month. 
 

Do you consider it debt when you pay the electric company in full every month? 

[f7ben]

6 hours ago, racer254 said:

Inflation caused by electing a 40+ year swamp creature.  Everyone knew it would happen.  Apparently 81 million votes said it was a "wanted" thing.

Curious what you think causes inflation?

[SSFB]

Just now, f7ben said:

Curious what you think causes inflation?

Snoughnut says don’t worry about that, just focus on right now. 

[snoughnut]

12 minutes ago, SSFB said:

Snoughnut says don’t worry about that, just focus on right now. 

Build Back Better!!!!! 

[SSFB]

7 minutes ago, snoughnut said:

Build Back Better!!!!! 

Derrrrrrrrrrr

 

[SkisNH]

Spending 5 trillion into an already over heated economy is fucking suicidal. 

[f7ben]

12 hours ago, SkisNH said:

Spending 5 trillion into an already over heated economy is fucking suicidal. 

So Trump should not have done that eh? Along with cutting taxes and slashing interest rates. It was a guaranteed recipe for massive inflation. 

[DriftBusta]

4 minutes ago, f7ben said:

So Trump should not have done that eh? Along with cutting taxes and slashing interest rates. It was a guaranteed recipe for stimulating the economy by putting more money, and Joe six packs wallets

Fixed.    

[SkisNH]

Just now, f7ben said:

So Trump should not have done that eh? Along with cutting taxes and slashing interest rates. It was a guaranteed recipe for massive inflation. 

Trump had no control over interest rates....and yes Trump shouldn't have signed one of those budgets. However, it is abundantly clear that the Biden massive spending bills in the name of covid relief were unneeded and caused the inflation we are experiencing.  CPI is 17% higher since he did those spending bills. 

Not excusing Trumps spending...and I will never complain about tax cuts. We don't have a revenue problem we have a spending problem. The tax cuts easily were covered by growth except for that little hiccup called covid

[f7ben]

1 minute ago, DriftBusta said:

Fixed.    

I mean if the economy wasn’t already sailing along with low unemployment and steady growth you’d be correct. But it was , so what he did was bad. 

[f7ben]

Just now, SkisNH said:

Trump had no control over interest rates....and yes Trump shouldn't have signed one of those budgets. However, it is abundantly clear that the Biden massive spending bills in the name of covid relief were unneeded and caused the inflation we are experiencing.  CPI is 17% higher since he did those spending bills. 

Not excusing Trumps spending...and I will never complain about tax cuts. We don't have a revenue problem we have a spending problem. The tax cuts easily were covered by growth except for that little hiccup called covid

Reasonable response for sure. The issue is we know god damn well democrats are going to spend like retards. They tell us they will. Republicans all babble about controlling spending and then they outspend the fucking Dems 

[SkisNH]

14 minutes ago, f7ben said:

Reasonable response for sure. The issue is we know god damn well democrats are going to spend like retards. They tell us they will. Republicans all babble about controlling spending and then they outspend the fucking Dems 

When he tried to curb spending and and shut down the govt due to issues with the proposed budget he got hammered...unfortunately, he didn't fight harder. 

[f7ben]

1 minute ago, SkisNH said:

When he tried to curb spending and and shut down the govt due to issues with the proposed budget he got hammered...unfortunately, he didn't fight harder. 

I agree , you have to consider the situation. I take more issue with his tax cut package. It wasn’t that the tax cuts were bad , it was that they were very poorly timed. That package is something that should be passed to combat a slowing economy. Not something that should be passed into a very healthy economy. I also take extreme issue with his handling of the central bank. He appointed Powell and they should have been maintaining or increasing rates and reducing the balance sheet. Not the exact opposite.