Marketplace What's the consumer debt tipping point?
Jun 9, 2025
Consumer credit is on the rise, surpassing projections, sparking concerns about household debt. Despite a solid job market, low-income families face mounting challenges. Warner Bros. has announced a significant split, shifting the media landscape's dynamics. The bicycle industry is also adapting to changing trends, with some companies struggling to keep up. Meanwhile, unique entrepreneurial stories from Eagle Mountain reveal how local businesses are thriving amid suburban growth, showcasing resilience in challenging economic times.
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Warner Bros Split: New vs Old Media
- Warner Brothers Discovery's split signals a shift from owning both content and distribution to focusing separately on new and traditional media.
- The streaming entity aims for growth investments, while the cable division targets stable returns with dividends.
Revel Bikes' Pandemic Struggles
- Revel Bikes faced a cash crunch after pandemic demand collapsed and interest rates rose, leading to its closure.
- The company was revived with a direct-to-consumer model and international shipping to avoid tariff uncertainties.
Consumer Credit Surges Despite Inflation
- Consumer credit increased sharply in April despite inflation worries, supported by low unemployment and steady paychecks.
- Credit card delinquencies rose among lower-income consumers, but overall, credit card companies benefit from higher interest rates.