This is Fine

As you can see from the chart below, credit card delinquencies are rising, but are nowhere close to the levels reached in 2008/2009. The “all is well” crowd will scoff at this as a warning sign for trouble ahead. These are the rich pricks who are benefiting from this dichotomous economy where the Haves reap all the benefits of inflation and the Have Nots get screwed over once again.

Prime credit card borrowers are doing just fine, for now. Meanwhile, the average working stiff with spotty credit is falling behind in their credit card payments at a skyrocketing rate, while accumulating interest at rates exceeding 20%.

It’s the small guys and the small banks that are bearing the brunt of the pain, just like the Too Big To Trust Wall Street banks have planned. They want another “financial crisis” where they pick up more middle class houses for pennies on the dollar and “rescue” hundreds of small banks by taking them over, to further consolidate their wealth, power and control over our entire economy. This is fine. Right?

Via Marketwatch

Borrowers with a VantageScore between 300 and 600 across these four cohorts experienced an 8.9% delinquency rate — of 30 to 59 days — in July 2023, up from 7.49% a year earlier, VantageScore data reveals. Credit-card borrowers with a prime credit score (between 661 and 780) had a delinquency rate of 0.1% in July 2023, broadly in-line with the prior year.

Separate data support the VantageScore conclusions. Credit-card delinquency rates at smaller banks hit a record high of 7.51% in the second quarter of 2023, up from 6.01% at the same time last year, according to the Federal Reserve Bank. That contrasts with a lower delinquency rate of 2.63% in the second quarter at the top 100 banks, compared with 1.71% a year ago.

The percentage of credit card debt more than 30 days past due is up for 6 straight quarters.

Delinquency rates have nearly doubled since their recent lows and now stand at their highest since 2020.

All as credit card debt crossed $1 trillion for the first time in history.… pic.twitter.com/zTHWTlfDww

— The Kobeissi Letter (@KobeissiLetter) August 15, 2023