Americans have reached the point of no return when it comes to consumer debt says that data of a large bank. The clock is ticking as the level of debt rises and the risk is increasing at a rapid pace.
“The clock is ticking,” Deutsche Bank’s chief international economist Torsten Slok told Yahoo Finance in a phone interview. “Maybe the risk here is that you’re actually in a situation where you should be paying attention to these charts and these consumers loans.” However, Slok is adamant that “the economy is doing fine — we are not about to enter a recession,” he said. The labor market is strong and so are wages, he insists.
If that’s the case, then why are so many consumers burdened by debt finding it increasingly hard to pay back the money they owe? Slok says it’s due to sub-prime loans. “When you come out of a recession, you can only get a loan if you [have a] stellar credit score,” Slok explained. However, after the 2009 slowdown, “loans were given more and more to people who had lower and lower credit scores … [and] soon deep-subprime credit scorers got loans.”
Deutsche’s own data, on the other hand, shows that the credit cycle does lead an economic slowdown. In other words, when delinquency rates on consumer loans take a big dip as they are now, there’s a likelihood that a recession could be on the horizon.
Those borrowers with lower credit scores probably shouldn’t have been given a loan, nor should they have requested one. But they are now adding to the alarming spikes in auto loans, credit card debt, and other personal loans. One of the key demographics experiencing this trouble is millennials. The New York Fed recently reported that the age cohort is leading the pack when it comes to auto loans that were more than 90 days delinquent, according to a report by Yahoo Finance.
Lenders are reacting to the delinquencies by hiking the interest rates on existing consumer loans, which in turn is increasing the burden on the consumer.
https://www.shtfplan.com/headline-news/trump-to-be-blamed-for-the-next-recession-but-americans-lack-of-responsibility-is-real-culprit_04242019
As U.S. consumers continue to balk personal responsibility and rack up a record amount in debt (a recent Federal Reserve report showed outstanding consumer debt topped a record $4 trillion) Deutsche Bank’s analysts showed that more borrowers are falling behind on a range of personal debts, like credit cards and auto loans.
Delinquencies make the potential of a recession much more likely. This is the “ticking time bomb” referenced earlier.
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The answer to America’s problems is the process of elimination, start with the 40 million illegals and the 100 million monthly entitlement deadbeats. Try keeping all felons locked up for at least 25 years each, and injection all those that have murdered.
Russia Decided to Deliver S-400 Missile System to Iran The relationship between Iran and America stand on the worst stage because both of countries relationship is not good between them America continuously wants to Iran that not increase the source to generate Uranium for develop Nuclear weapons, But the Iran response is not in America favour, on the other side Russia also give support to Iran that disagree those instruction that America forced to Iran work for it
Russia Decided to Deliver S-400 Missile System to Iran The relationship between Iran and America stand on the worst stage because both of countries relationship is not good between them America continuously wants to Iran that not increase the source to generate Uranium for develop Nuclear weapons, But the Iran response is not in America favour, on the other side Russia also give support to Iran that disagree those instruction that America forced to Iran work for it
I am not worried. Bernie will eliminate consumer debt right after he eliminates student loan debt, as they are both a drag on the economy. Hey why not eliminate all debt? Borrow and never pay it back! Everything except taxes of course! (sarc)
Repeal the 1913 “Federal” “Reserve” Act.
Take away from the small group of criminals, the
debt money makers, their ability to create their illegal tender.
Make America great.
Benjamin Franklin said that the War of Independence was fought to free America from the strings that held us to the Bank of England.
Every one of the Founding Fathers warned us about the dangers of the Central Bank System.
I believe that is why the monuments are coming down. The young people might respect these men and guard themselves against the dangers of Central private banks.
.
That is a top-grade overall something accordance regardless victory. shtfplan.com
http://bit.ly/2NN4BHZ