Rebel Capitalist News Consumer Debt Just Hit Dangerous Levels, China Collapse Gets Worse, Labor Market Weakening
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Jan 9, 2025 Consumer debt in the U.S. is skyrocketing, raising alarms about potential economic instability. China's real estate market is in freefall, drawing parallels to past global crises and testing household wealth. As the job market weakens, with hiring at a decade low, the driving factors appear to be market conditions rather than politics. The discussion delves into how these issues intertwine with global economies, urging a reevaluation of economic perceptions versus realities. Buckle up for an eye-opening analysis!
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Consumer Debt and Recession
- Consumer debt hitting all-time highs, then plunging, signals recession.
- This credit card debt drop is similar to past recessions.
Credit Types and Economic Weakness
- Revolving credit (credit cards) has contracted significantly.
- Non-revolving credit (auto loans) also shows a decline, signaling economic weakness.
Delinquency Rates and Recession
- Credit card delinquency rates are rising, not at all-time highs, but higher than 2019.
- Increasing delinquencies, combined with other factors, suggest a potential recession.