Posted on 10/03/2023 12:00:54 PM PDT by george76
Goldman Sachs predicts credit card losses will continue to climb through the end of 2024/early 2025.
What is unusual is that the losses are accelerating outside of an economic downturn, the firm said.
Credit card losses currently stand at 3.63%, up 1.5 percentage points from the bottom.
Credit card companies are racking up losses at the fastest pace in almost 30 years, outside of the Great Financial Crisis, according to Goldman Sachs.
Credit card losses bottomed in September 2021, and while initial increases were likely reversals from stimulus, they have been rapidly rising since the first quarter of 2022. Since that time, it’s an increasing rate of losses only seen in recent history during the recession of 2008.
It is far from over, the firm predicts.
Losses currently stand at 3.63%, up 1.5 percentage points from the bottom, and Goldman sees them rising another 1.3 percentage points to 4.93%. This comes at a time when Americans owe more than $1 trillion on credit cards, a record high, according to the Federal Reserve Bank of New York.
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What is unusual is that the losses are accelerating outside of an economic downturn...
Of the past five credit card loss cycles, three were characterized by recessions,
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History also shows that losses tend to peak six to eight quarters after loan growth peaks, he said. That implies the credit normalization cycle is only at its halfway point, hence the late 2024, early 2025 prediction
(Excerpt) Read more at cnbc.com ...
The US Goverment can lie all it wants about the state of the economy. They cannot lie about outcomes. Reality always wins in the end
“outside of an economic downturn”
Out of touch-
What the hell is Bidenomics if not a continuous downturn?
Do they mean the CC companies gave credit to people who were "high-risk" and they defaulted?
The economy sucks, but shouldn't the CC companies adjust fire and tighten up who they give credit to?
FTA: “What is unusual is that the losses are accelerating outside of an economic downturn, the firm said.”
This is so insanely stupid it’s beyond words. The economy is starting its third year of non-stop contraction.
I was wondering where the Millies and Zero Geez were getting all their money. They come back from spring break and head off to Europe for the summer.
They are still kissing Dementia Joe's ass, I see.
“What is unusual is that the losses are accelerating outside of an economic downturn, the firm said. “
So how big will the losses be when we get an “official” economic downturn ?
The best thing to do is quickly allow in 5 or 10 million more illegals. Instead of waiting for them to enter illegally, we could just fly cargo planes over and pick them up.
Don’t worry, it’s going to be just fine. Many years ago Joe Biden secured legislation making it almost impossible to go BK on credit card debt, it will be repaid.
My guess is the government insists they give credit cards to certain protected people and the losses are related.
They can’t because that would be too racist.
The other major change happening now is that the Millenials have to now start paying back their student loans again.
So, even more Starbucks Grande Latte will be charged on their VISA.
Let’s see:
People won’t work.
People continue spending at unsustainable levels.
The savings rate shrinks.
It seems to me that Americans were on a post covid party, and now they’re beginning to find they are tapped out. Maxed out credit cards and no savings.
This was easy to see coming, I’m surprised it hasn’t happened sooner.
Government statistics are lagging indicators.
By the time they admit there is a slowdown Wall Street folks will be throwing furniture at windows and jumping out of them.
WOW what a shock.. the econ sucks, and cnbc is trying to blow cover for joek
sure credit card defaults are on the rise. so the credit card company’s charge off the debit and the holders take a hit on their credit reports for 7 yrs. nothing new under the sun
Might have already started.
When Black Friday comes
I stand down by the door
And catch the grey men when they
Dive from the fourteenth floor
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