Capital One shutting off credit cards. Delinquencies spike to 2008 levels.
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- Опубликовано: 18 июн 2024
- Credit card charge-offs and liquidations have hit their highest rate since 2008 for credit card issuers such as Capital One and Discover, a concerning sign for the outlook of the US economy. The Federal Reserve is starting to sign alarm bells about this.
Recent reports from card issuers, including AMEX (American Express), also show an increase in delinquencies and charge-offs. A sign that US consumers are struggling to pay their bills and could be on the verge of reducing spending.
If consumer spending gets cut back, that's something which could cause a recession. As spending accounts for almost 70% of US GDP.
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The unemployment rate is a lot higher than what they are telling us.
No shot it’s 3% including disabled people, homeless, Sick etc
They also aren’t counting population increase (immigration) from the pre pandemic period
I would say the unemployment rate is over 30%
Employment participation rate is a more useful stat and that hasn't recovered from the last financial crisis in 2008.
But there are plenty of jobs just most Americans are too good for most. Like picking fruit
I lost everything in 2009. Never again, been debt free for 14 years. I see the cycle repeating
I lost nothing in 2009 and have been debt free since 1992 when I paid off our mortgage early.
@@psdaengr911 Imagine bragging about being old. The definition of a participation trophy. We've had 217 % inflation since then.
Congrats for being able to come back from that i remember (albeit as a younger kid) how a lot of families were ruined by the 2008 financial crisis and i hope we're not headed that way
I saw the financial crisis as a child and watched my friends’ parents suffer through it. I avoid debt like the plague and pay off everything really quickly. Paid off my car recently with 3 years to spare.
@@gezenews That ain't much inflation, just 217%. $8.00 is a fair price for a loaf of bread. By they way, a loaf of bread in the 30's was about 5 cents from what I'm told.
These banks give you .05% interest on your CD's and charge you 22% interest on your CC interest. How generous
They don't give 5% anymore, it's down to 4s
at much as 36% from what I'm told.
Credit cart interest rates rose to crazy levels during the Reagan years, when the federal interest rate skyrocketed up to double digits. Surprise surprise, though . . . when the fed rate dropped down to near zero, the credit card rates did NOT follow suit. And those sleazeballs want everyone making the bare minimum payment every month, over our heads in debt to them for life.
according to the bonfire fuel mailed to me, I prequalify for 29% card offers
@@robertbrown1021mines over 5
This entire economy right now is unsustainable
NO, it cant be with billions for war, illegals and oligarchs looting.
It's sustainable for billionaires. Not us peons
@@christianrobloxserver7282 Yes, the ones that get peed on all the time.
It's unsustainable for the Wmagas but fine for everyone else. 😆
@@ytsux9259 it has absolutely nothing to do with social structures and everything to do with greed,power and position. Get a clue. Stop being led around like a monkey on a leash.
The important thing to remember is that this debt bubble isn't just in real estate like it was last time. It's literally everywhere in every aspect of the economy.
It was in everything last time. Just real estate was remembered because of how big it is.
It was in everything last time because those bad loans were repackaged, given a “AAA” ratings and became investment vehicles.
Equally important - never in world history have we seen a bubble this massive while having SIMULTANEOUS 35-50% increases in utilities, insurance, groceries, and transportation costs. The median income earner is being hit from all sides not only for the first time in history, but at greater percentages relative to the median income than ever in history. I was 20 in 2008, spent a year saving a 10% downpayment and bought a house in Florida 2 miles from the beach for $60,000 at 60% off of 2007 values, and to put that in perspective, that same identical home is $300,000 today. It was $140,000 in 2007 at the peak of the bubble and even THAT proved unsustainable. It's 45% worse today overall than 2006-2007 peak bubble mathematically.
It was everything last time too. I remember people weren't paying their credit cards or car payments. Credit cards are always the first thing to go. Why pay a credit card when you already got your stuff and they can't repo the stuff you bought?
@@Just_B2U believe that?
Every mainstream outlet is lecturing us about how strong the economy is. But when I talk to everyone I know, I get a different picture. Food, utilities, housing, fuel, all overpriced for the average person, all pain points.
I don’t know how but you’ve managed to package an unbiased analysis that is more entertaining than the sensationalized segment of economic and financial news. Thank you for your efforts to be the signal and not the noise. I understand that the economy is currently in a downturn and that we must wait for things to get better
As hard as it may sound you can plan for the recession. If you are working, find extra work and get an Invest--advisor. Protect your deposits by having enough cash in short term fixed income. Then cut your expenses. Minimal insurance, cut utilities.
I think the current market might give opportunities to maximize profit within a short term, but in order to execute such strategy , you must be a skilled practitioner
It's often true that people underestimate the importance of financial advisors until they feel the negative effects of emotional decision-making. I remember a few summers ago, after a tough divorce, when I needed a boost for my struggling business. I researched and found a licensed advisor who diligently helped grow my reserves despite inflation. Consequently, my reserves increased from $275k to around $750k.
Even if you have a humongous income you still need to draw up futuristic plans because anything can happen. One could lose one's job or whatever. Investment cannot be overemphasized. About your advisor, how does one reach pls
Finding financial advisors like Melissa Terri Swayne who can assist you shape your portfolio would be a very creative option. There will be difficult times ahead, and prudent personal money management will be essential to navigating them.
Job posting are fake. My daughter and her friends have been looking for a job for a while. They go on indeed and other sites and post their resumes. They never hear back from anyone. They tried changing their resume and name to see what the employers are looking for. They sent 100 resumes to various companies and never heard back from anyone.
Not fake. I'm an employer and received 150 applications for 1 position within 4 days. Can't reply to them all... picked 2 decent candidates from that entire pool. Nobody cares about college grads...we de-prioritize them i.e. if you only have a degree vs someone w no degree and working, degree holder does not get a call.
yup. in the same boat
What type of job?
That happened to me in la when my company lost tons of contracts. I wound up having to leave la( which I loved) to go 3000 miles across the country. Now it’s happening here to others. I’m doing ok so far. Hope your kids find jobs
Probably not all fake. Our company rejects 95% of all applications due to lack of reading or qualifications. And then half the time, the hiring manager tells HR who to pick for interviews...so there is a little fixing going on at times. But yeah...I'm sure there are fakes ones as well.
I see not holding any bankers accountable for 2008 is working out nicely
So true unfortunately
Too big to fail 🙃
The American way.
@@nomaam-br549unfortunately it is the global way. Greek banks on 2008 were affected by the house bubble because they had invested in American Superpacks. They got bailed out by the EU and Gov and the Greek population was left with a huge debt and an economy that would never recover. Banks never loose.
That reminds me, Gerald Celente will have his weekly YT update every Tuesday.
What they aren't talking about is UNDER employment. Two of my daughters in their 20s cannot find jobs over 20 hours. One of them keeps getting her hours cut, the other has 2 jobs that together is less than 36 hours. And her main job is grant based and she doesn't know if she will have a job after May. It is crazy.
Stagflation is currently happening.
What skills do your daughters have? There is a great need in many fields such as the trades. Yes women are needed in the trades: electrician, plumber and pipefitter etc. . Also RN, LVN, respiratory therapy, pharmacy teach, Registered Veterinary Technician, social workers, teachers (in blue states the pay is high) The key is you must have a hands on skill or work in a gate kept field.
My best friend works a job where they bring businesses in and hold them as clients. There were 3 of them and then they hired a fourth person splitting the clients. They are getting paid 25% less and are expected to do the same amount of work. She is leaving because of that and has to get a second job. These companies aren’t loyal.
So true. I see many people not working. They lie on job reports.
Sounds like they might have to get more than one job and they might have to get real jobs. You get what you vote for lady.
We paid everything off over 10 years ago, tripled our income, and we have very little discretionary money left in our monthly budget. How are people surviving right now?
This is why you pay cash, spend only what’s in your BUDGET. America is too much into “keeping up with the Jones’s”. You need a credit card for car rentals, to purchase a flight or an absolute emergency, not for everyday purchases. I personally buy prepaid cards to protect myself & use it to make online purchases for the amount of the item I want to buy, but I try to buy local as much as possible.
@@ketoauntie7301 I've not had a credit card for 10 years. I've had no issues renting cars, hotels, or anything else. You don't need credit cards for emergencies. Having cash set aside for emergencies works better, as you can earn interest instead of paying it.
The rent is too damn high!
Right damn lol
I worked for a major credit card company during 2008 and noticed that the people who charged utilities on the credit card were shutdown while the people who charged luxuries had their balance available raised.
My personal experience as a consumer with a good salary and former bad habits with luxury shopping 💯 validates this.
I've been paying off my debt and getting close... but wondering why this hasn't happened to me LOL
Now I know. The CCs were always for designer clothing and similar 😅
Not anymore, I'm reforrmed... but yeah.
@TimesUp8888 congrats and keep pushing!
😂. I buy one new Louis Vuitton wallet every year. Hopefully this keeps my credit line active.
@CapeSIX It's all part of your social credit score. Lol
"shrug" i always use my credit card for utilities / but i pay it off right away, just do it for the 3 percent cashback
I just paid off my capital one car loan six years early. Cost them a few thousand. I dont feel guilty in the slightest.
It didn't cost them money, it saved them money. They didn't get your interest but they can re-lend that money at today's higher interest rates. Good on you for paying it off early!
6 years early? What did you have a 30-year car loan?
@@bikinggreg maybe a 7 or 8 year car loan. I hear that's the new trend. 72-mo and 84-mo loans
Lol they still made money off your interest.
😂😂😂@@bikinggreg
America is currently plagued by the hydra-headed evil duo of inflation and recession. The worst part about this recession is that consumers are racking up credit card debt. In April alone, credit card debt went up 20% while rates have doubled in a year. Inflation is so high that consumers are literally taking debt for basic life necessities. Collapse has indeed begun..
Every day we have a new problem. It's the new normal. At first we thought it was a crisis, now we know it's a new normal and we have to adapt. this year will be a year of severe economic pain all over the nation.. what steps can we take to generate more income during quantitative adjustment?I can't afford my hard-earned 480k savings to turn to dust
This is precisely why I like having a portfolio coach guide my day-to-day market decisions: with their extensive knowledge of going long and short at the same time, using risk for its asymmetrical upside and laying it off as a hedge against the inevitable downward turns, their skillset makes it nearly impossible for them to underperform. I've been utilizing a portfolio coach for more than two years, and I've made over $800,000.
@@mariaguerrero08Mind if I ask you to recommend this particular coach you using their service?
*Gertrude Margaret Quinto* maintains an online presence. Just make a simple search for her name online.
She appears to be well-educated and well-read. I ran a Google search for her name and came across her website; thank you for sharing.
I'm an electrician and we are on strike for the first time in 50 years. The NECA contractors are making record profits, charging high voltage labor rates ($70 per hour) for low voltage work ($45 per hour) and pocketing the difference yet they somehow can't afford to pay us inflation level raises. The strike has been going on for 3.5 weeks our picket line has shut down several big job sites but the NECA contractors still won't budge. I think a lot of workers are in this situation where despite record corporate profits their raises aren't keeping up with inflation and they are going into credit card debt just to pay for basic necessities.
They’ll just hire illegals to take your job.
Capitalism has peaked.
@@prashanthb6521 Just finish high school before you come in here and spout bs.
@@prashanthb6521I suggest looking up The Great Leap Forward before spewing your hatred for capitalism.
@@EnigmaticDecay tell me how he's wrong
We have been in a recession, I’m a truck driver & drive in the LTL industry. The daily freight is down about 33% percent daily, went from 260 bills to 155 bills daily, we deal with small businesses & they’re struggling in general.
You know it's bad when trucker drivers are really struggling..
Rembr.2008.?
Blame all this on corrupted Fake President Joe Biden for destroying America economy
Yup, I got a pay cut from my company but don't want to leave because these guys took care of me. Loyalty is the only reason I'm not looking for another company to drive for at the moment. Hopefully, by 2025, with Trump in office I think I'll get back to being an owner op.
Hey trucker ! In the name of Jo Biden i rebuke your report. You must be a Russian bot. You are not worshiping me properly
I just paid off my last 2 credit cards today. I have no CC debt anymore. It feels so good. Just have car payment and mortgage left.
You paid off TWO cards in one day? That's like a ballplayer smashing out two grand slams during a double-header. You are a god.
Great job.
Rock on
Congratulations!!!
Congratulations
My credit is perfect and my card interest rate is 30%. It's fine since I pay it off every month, but the rate is completely not tethered to the customer’s credit score.
I agree. I have an 835 credit score and my interest rate is 29%. I pay it off every month so I don’t really care.
Predatory lending should be illegal
Looks like lots of Peloton bikes and big screen TVs never got paid off.
There now advertising to rent their overpriced equipment. LOL
Good, I hate those commercials. Scam!
😂
The couches and TV’s for the AirBNB are making people consider bankruptcy lol
i think we've effectively split into two economies at this point; one for the very few wealthy 1-3% of people that appears to be doing well (the investor/ceo class), and one for the rest of us in the real working world that is suffocating us slowly
Hey, it's just like China! No seriously, the at was the craziest thing I remarked when I was there. Also, neither China nor US are communist or democratic Republic. They are high capitalist.
sorta, they are running into other issues / like companies allowing their best employees to work from home in other areas of the country (pretty much know a lot of good software engineers that didn't get laid off... most all moved out of california --- friend and his girl bought a house close to where her parents live back home and the main reason was housing available, they compared by his parents too that lived in another state) what it comes down to is the amount of house they bought (400-500k) where they live would have cost them probably close to 3-4 million where they were living b4
not worth it....
but yea, both have good salaries / but they moved out of silicon valley area
Cc company's are legal loan sharks. 30% interest!
i hear everyone saying that folks are out there using cc's, I'm on SSD and I've had to use my cards; for food, as well as many others,. (: I was walloped with massive medical bills and it set me off on a trail that I've used 4 payments deal for groceries, it was that or starve, so I used it. Just wanted to tell you it's not all TVs that they are buying it's food, at least for us who are on the poorer side. :)
Im using it for my uni bill, might need it for fuel as i do doordash to prevent being unable to get income
Nick, I work in healthcare, I’m a registered nurse, access continues to be a problem for many healthcare organizations because we do not have enough providers or registered nurses to care for the members. We are losing four physicians to retirement this year. We’re only replacing one. The other thing I noticed this year is we are hiring a ton of new grad RNs. This is highly unusual. It’s usually very tough to get a job as a new grad. I suspect they’re doing it because they want to pay us less , they’re pushing out the experienced among us.
That’s absolutely what is happening. They want to pay less for less skilled workers because healthcare does not care about the quality of care, they care about the money. I hate our healthcare system
This is why I didn't listen to my mom to be a RN. I knew if tons of people listens to their moms and tv commercials to be a nurse that the profession would receive less money. Ended up working as a admin in a hospital tho
@@markmonaco70 RNs make 45+ an hour in a medium cost of living area in Ca. Maybe it's much different in some states. But $90+k is very good starting pay for the amount of education.
Lots of experienced Nurses are Traveling or working registry for higher pay and autonomy.
California has the most accurate stats with roughly 12,000 new RN graduates each year. With this many people flooding the workplace employers are going to pay less and less. They will tell you "if you don't do it will replace you with someone else" This happens in every industry that gets flooded. Basically corporations want everyone to have 3 jobs just to live so they can keep their profits high. I have seen a few people get "laid off" this year when they asked for a raise only to have that same position filled by a new employee for 80% of what they were paying my friend before they let him go.
As someone who works in finance everything he’s saying is true and will lead to something bad. What you don’t know is the timeframe, is it 6 months or 6 years? These things can trudge along much longer than anyone predicts. They usually happen when no one or very few are predicting. Watch the FED, if it changes course quickly and starts cratering rates, something bad is on the way.
That last sentence , BINGO! Excellent post, Mark. 👍
What the fed does is meaningless compared to government deficit spending. My opinion is the fed should be raising rates.
The Feds put a freeze on cutting rates.
I predict rates will be raised after November election. Watch.
You are so right, Mark. Especially the last sentence. Another point I will make is that ex-insurance, we are already in disinflation and heading for deflation. The government stimulus ripple is about done. The foundation is crumbling. A Fed hard reversal IS indeed the tell.
By cratering rates, do you mean going down? Or up? Or both?
Financial institutions are hiding their defaults regarding credit cards, car loans, home loans and commercial property loans. One has to ask themselves is why????
Don't want to cause a panic. That's what will be the difference between a recession and depression.
That's a powerful statement. What evidence do you have defaults are being hidden?
They are counting on a back door bailout
Guys, these guys are making tons load of money each month from people making minimum payments. Principles are paid long time in advance but they still add all the “debts” accumulated through AP rates, hence the 1+trillion debts to make people keep paying. A big secret. This government is actually pretty rich. Any crash is actually artificial for reset. House prices fall and more. Otherwise, house prices will go through the roof. Housing crash sees prices cut in half, in most cases, for a new beginning. This is the game.
Who cares about home loans? That property moves fast with 11 million new residents.
Rapidly knocking on our door, an international, irreversible, 1930’s style, Depression, without any readily available remedy or easy exit!
As someone who lived through the 1970s, the current situation feels to be setting up eerily similar to the stagflation experienced then.
The key difference is that in the 70s the debt to gdp ratio was 30%... now it's 130%. Big brother is going completely negate higher interest rates.
@@BK-tp6jf High inflation 1973 to 1981. People were broke and stayed home and watched TV. No excess income. Stock market was flat. Little job growth. Gasoline was 60 cents a gallon. 20 year mortgages were introduced due to high interest rates.
@@BK-tp6jf the big difference was the pandemic which greatly distorted supply chains, overconsumption because so many were stuck at home, the great resignation since people stuck at home had ample time to reflect on their jobs and careers. Energy prices became. Tight because of the war in Ukraine. That's the common denominator.
Pretty soon 40 will be the norm and 50 will be introduced. This shit is ridiculous!!@sunnyd4734
I've overheard people at the store talk about getting fired after decades of working at one place. Something is here.
Entry level Pay versus Senior or advanced Pay for Companies.Who do you think is getting the Axe when there looking to cut costs?Lol 😏😂I started at $12 hr 5 years ago,and worked my way up to $17.They could get rid of me ,and hire someone else at starting pay to do it cheaper.
I work as a welder for a food producer in rural Oregon. We're not sure if we'll have jobs after this month. Looks like we might be getting shut down after over 100years in production. The economy is getting worse than 2008. But we're all supposed to believe everything is fine. Even manufacturers of our equipment are shutting down.
Vote blue
@MyDyerMaker never, even if I did believe in our system enough to vote. I would never vote dem.....
@@denariusag Blue? Isn't that the system we have now?
@denariusag Just being a troll. My best bud since age 12 told me he was running for county office as a democrat. I told em I love you, but I will never vote for a democrat as long as I'm alive.
So much for Mike Rowe's advice.
The government has really called things more difficult for its citizens, and we can't sit back and bear all the consequences of the bad governance. It's obvious we are neck dip on inflation,it is always the poor who take the hit.
I feel sympathy and empathy for our country, low income earners are suffering to survive, and I appreciate Caroline. You've helped my family with your advice. imagine investing $30,000 and receiving $95,460 after 28 days of trading.
I'm in a similar situation where should I look to increase income? Do you have any advice? What did you do? Thank you
My major concern now is how can I generate more revenue during quantitative times? I can't afford to see all my savings crumble to dust.
Thanks to Mrs Carolina Maria Bravo
She's a licensed broker.
Capital one lowered cut my credit limit in half because I never used it. They are definitely running damage control of some kind
mine still 50k and flabbergasted since the day it was issued.. insanely high.. I’m young with a normal job
No... keep that high limit. Just don't use it.
If u don't use it what's the point? Your score will drop
Mine was also just cut…in half in my case. Credit score is 812. Stated reason was the same…
Mainstream news is too busy running stories about Drake and Kendrick Lamar lol. Thanks for keeping us informed about the reality of the situation Nick
and P Diddler, all the hollyweird Pedos
Our newscasters are not reporting the real news because they need to keep their job.
The roof koreans remain correct.
And the BS cases against President Trump!
There is no mainstream "news" running stories about Drake and Kendrick Lamar. You're talking about celeb gossip rags, not news outlets
There are a lot of phantom job openings. When you apply, they don’t interview anyone for the job openings
Yep a lot of layoffs here in vegas less travelers America is crumbling
Cant wait to finish paying my 120 dollar on my Capital One Account intrest rate is like 30.74 percent is pure Madness
The greed of these CC companies is incomprehensible.
30.74 APR🤯. I am Dead ⚰️
@@praizequeen Yes am dead Serious
@@Peace2all4vr Precisely!!
I don’t pay credit card interest. They pay me.
You should do the same.
🤔.....I think we're in a SILENT DEPRESSION 😢
We *have* been since 2008.
D
I tried to teach my daughter not to use credit as a loan but she decided on learning the hard way. It was my fault when I racked up $8k in credit card debt in my 20's and it's my daughters fault that she racked up $15k in credit card debt in her 20's. We both had all the information, we knew the costs....
Nick you are NOT negative. You are a realist. I have tremendous respect for your ability to tell us the truth backed by data.
The pivotal point was 2019.
Fabio Vighi claims it was “overheating […] in the leveraged loan market” in June 2019 that started the ball rolling. Some say it was peak oil. Either way, collapse now and avoid the rush.
I was young during the 2000s, nice car, bought a house I couldn't afford and did the typical credit card thing.
I had about 40-50k in CC debt going into 2008. The CC companies began cutting my limits and upping the monthly minimum. I'd pay off a grand or two and they would immediately cut the limit down more so I always had maybe 500 bucks. The low limit to debt load destroyed my FICO, making everything even worse.
In 2009 I lost my job. Almost went bankrupt. Dumped all the cards. Now debt free and will never do that again.
Don't be younger me, kids.
I went through the same thing during the last crash... Never overextending on credit cards again
Just don't go bankrupt, let the cards charge off and wait a few years and you can rebuild your credit just fine
@@albrinks4017 That's what I did. Had a couple try to sue me, but paid a lawyer about a grand and they just back off at that point. They are only looking for default judgements.
I have super high limits now with zero balances and an 810 FICO. I'm kind of tempted to go buy a ton of gold and repeat the process, but that's unethical 😂
@@albrinks4017 No one wants credit!!! They just put it out here, forget everything they told you, you should do. Whats not clicking??
@@albrinks4017how does that work? Cc companies sell bad debt to collection agencies which file lawsuits and get your wages garnished forever. Better off going bankrupt
I just got a big limit increase from capital one 🤣. They want me to carry a balance, but I haven’t paid a cent in interest since 2018.
That's the way to be, good for you. Last time I paid interest on any credit card was 2002. I don't understand how people don't budget. No one knows how to keep their spending under control. I think that's the top problem that no one wants to talk about.
Same here
They make money off every single transaction. They need people like you to help manage their risk.
Creditors call us deadbeats, lol. People who pay off their balance in full each month and avoid interest fees.
I just have them for the points/cash back. It's like getting stuff that I was gonna pay for anyway at 1-98% off. (Some store cards give super high discounts on top of cash back just for paying with the store's credit card at checkout. Regular/bank credit cards tend to be on the much lower end.)
Tried to n3gotiate the interest rate , but would not want to negotiate so I stop payment could not bring by principle balance so now they don't get nothing and has become charge off ? Tou are greedy then you don't get nothing
They closed my account because I never used that card. Now they harass me with $300 bonus offers to get me back. Make it make sense..
Ha, crazy
Same.
The reason job openings are dropping is because companies are automating and outsourcing AMERICAN jobs! Jobs generally held by the middle class!!!!!
credit cards first. then car payments. then rent/mortgage. It's the same order of events every time.
honestly wish it would hurry up.... tired of this imaginary prosperity.
@@brn2863 Yep!
@@brn2863 you are FAR from alone. The .gov just printing like crazy to postpone it is just making everything worse.
@@markpitchford7375 Mind if I ask a simple qn? Why aren't more Americans aware that collectively, as a nation, you guys are broke, and demanding your politicians rein in spending? It's mind boggling to me. It's like the whole world knows what needs to be done except you guys.
This crash is gonna be legendary man
Condition appear to be much worse than the 2008 setup.
Yep.
It feels much more broad based, especially with the commercial real estate situation.
Definitely worse. There wasn't this much inflation for food and goods. It was all about the defaulted mortgages.
It’s a bigger bubble, it’s worse this time
💯
To quote George Carlin, it's called the American Dream, because you have to be asleep to believe it
😂 👍🏾!!!!
I make over 6 figures, never missed a payment on any account in my entire life and Capital One also shut my active, paid up to date, card off. Makes me wonder if the credit card companies aren’t in trouble.
The US is the only country that prioritizes credit scores above all else, even though it is actually debt.
At some point, the US will reap the consequences.
Some countries use social credit scores to determine if you’re worthy to receive anything, healthcare included
USA is a crumbling empire
@@pmscalisiand those nations will crumble as well.
@@pmscalisi
That's why I'm confused. How can people who buy with debt be more worthy than people who buy with cash.
As an old school person, I still adhere to the principle that cash is king.
@araara4746 credit scores are used for poor people. If you have to check your credit score before buying a house or car then you are poor
I have close to 30,000 in available credit.. with interest rates pushing 30% I refuse to use any credit
I would buy a tent, and book ahead on four years on a storage unit.
Hello, Great video. My wife and I are retired living in Florida and we have over $40,000 credit card debt. We don’t go out much just go fishing about twice a week. Most of the time we catch lunch and dinner that helps us out. We do pay around $600 a month on all the cards but it’s going to take years to pay them back. Keep up the great work on your videos.
Sincerely Rick
When this 💩 goes down, pay everything except them, put your phone on voicemail, ignore the messages, don't stress, and throw their dunning letters straight in the trash.
They cut my credit in half and I’m not even carrying a balance.
That's why. They'll discontinue the card if they're not making money.
True, they cancelled me. I don't think they ever made a cent off me.
They tewk yeur curd!
D
@@gregorysagegreene😆
I don't think the job market is very solid. At least not for real 40+ hour per week, good paying jobs. Layoff notices are getting sent out. just yesterday one of my best tenants who has a great city employee job got laid off. I think the crack is widening. When people can no longer use credit cards to keep them a float in a storm....their ship starts to sink.
I'm skeptical that any cities are laying off currently
There is no financial training for anyone is America. Marketing and banks all encourages people to overspend and give them plenty of credit.
It blows my mind that public schools do not teach about managing money,
@@bobsoft preplanned and it's working for the big shots pockets. We are all peons, until we smarting up. My parents taught me, screw schools. Been debt free since I was 36. Been using cash since and I'm 60 now. My credit score is N/A, since I haven't used credit for over 24+ years.
I'm pretty sure there is no 'financial training' in other countries. It's the American mentality and kids/young adults being nurtured into debt from young age (college debt). In other countries people in their twenties are afraid of debt in the USA they already have debt and that's normalized.
Is that English?
@@bobsoft In reality, it should blow your mind that parents don't take this responsibility on themselves but we are far enough down the road that an overwhelming percentage of parents would not capable. It is a systemic problem.
Discover Card refused my $49 charge back request for an Amazon return that Amazon claimed they never got. Screw them, from a 30 yr card holder.
i quit amazon and use walmart
It sounds like your problem is with Amazon. Not the credit card company. This is one reason I quit using Amazon 4 years ago.
I dumped US Bank after they pulled that crap on a fraudulent charge. Closed the account and left them with the remainder balance.
I opened a discover account just to take a personal loan off it. Never used it otherwise. Think they have closed it since. Don't know don't care
@@robnunurbiznezz7618 He basically fucked his credit to stick it to the multi billion dollar company and endless resources
In 2008 people still had luxuries like cable. After that crash middle class/lower class got rid of all extra expenses, fast forward to now and people have nothing left to give up except their monthly bills like cars and houses. Forget about credit cards-- everyone late on their credit cards will be losing their homes and or cars soon. We haven’t seen anything yet.
How are corporate media not reporting the charge offs? The owner class doesnt benefit from it that is why.
We're also in an election year. Who does the media want elected? "It's the economy, stupid!"
The banks actually can benefit from charge offs. They can write it off as a loss to offset their profits thus lowering their overall tax burden. This is how some corporations can get their effective tax rate down to sub 10%
I’ve heard it on multiple CNBC and Bloomberg shows. It’s “bad news” so i guarantee it’s been doom and gloomed on Fox Biz. Probably buried at MSNBC and CNN. If trump were in office those last 3 would flip 180. But has been covered by business-TV sources.
@@redtiger7268right but the last thing they want to do is advertise that.
@@redtiger7268 Yup, and advertising is a big part of that. Ads don't work, and likely never have. When have you last clicked on an ad? That patronage, however, is a calculated loss and doubles as a way to influence the entertainment industry to push propaganda, at the very least. Getting a tax break on account of losses that play into entertainment is just an intricate way for the government to launder propaganda, at the end of the day. End our tax system and you also end our entertainment industry, especially social media which is totally beholden to advertisement revenue.
I’m personally saving more than 38% of my pay a month family of 3 stuff is too expensive so we cut way back and sold one car. Now we are comfortable but before I was living paycheck to paycheck trying to make it last. I don’t use credit cards so I have no crazy debts I am just a single income household granted I make 7k after taxes I know a lot of people don’t. I believe we are in a recession if you use the definition of what it is. The consumer will just have to cut back on luxuries like I did and it’ll be better. You don’t need subscriptions and you can shop at Aldi or other stores that save money. Don’t buy anything you don’t need. The only things I need is food water and shelter and baby clothes for my child that’s about it. Cutting out expenses is hard because we can justify everything we need but if you want to do more than survive it’s necessary I’m building back up my emergency savings and saving for another house
One of the main things to add to your post is to learn to cook/bake from
Scratch.. make your snack, coffee and /or drink with you when you leave your house.. always eat before u leave your house unless its a
Planned. Buy at rock bottom prices in bulk.. example hamburger went on sale for $1.99lb I bought 10 lbs but thats only because there was a limit or I would have bought 50lbs.. I have a food saver as well as I can food.. by doing this you are stocking your pantry n freezers.. Many people have no idea they can make their connivence food.. frozen pizzas, tater tots, french , s fries to sherbet n non ice cream maker ice cream at home for a fraction of the cost.
The other thing as far as fast food goes, you can save a lot of money and eat healthier if you go to the salad bar at a grocery store.
Yes. 8 years ago we were paycheck to paycheck. Then we went total scorched earth on our debt, paid it all off, CC personal, kids student loan, car loan and mortgage. Then we took an axe to our spending, got on a budget and established a 6 month emergency fund. In 2023, the first full year being debt free and with an emergency fund in place, we were able to achieve a 50% savings rate, which is amazing I think. This on basically the same income that had us paycheck to paycheck 8 years ago. I always say this: I hate inflation as much as anyone but in all honesty it hasn't reduced our ability to save and invest.
Emergency savings first. No one should consider saving for a house Until Emergency fund is set up- and no tiny 400 - 500 $ amount like the lame ass media suggests- at least 4-5 THOUSAND dollar emergency fund.
@@johnkelly7757 thanks for your concern my emergency savings is 12 months of expenses which is which is about $44,000 and I can save more but I’m contributing to my ROTH IRA’s. To add to that I have access to a VA loan which means no down payment and no PMI. If the interest rates don’t go down I was going to do an interest rate buy down.
Funny enough, I just got approved for a capital one cc with a $5,000 limit and I only make $17000 per year.
Learned my lesson back in 2008. No bank debt here. Avoid adjustable rate loans and CC's.
Live within your means.
Cash in the bank on hand. 0 debt!
Steady job with plenty of OT.
Fool me once shame on you (Banks). Fool me twice ... NOT GOING TO HAPPEN!
I work for the state in AZ and we are on a hiring freeze. This is due to a budget deficit. In our constitution our budget must balance.
Same story for the District of Columbia. Congress requires a balanced budget from DC and they're now starting to pull money from programs, freezing new hires, etc.
wish the same was true of the federal .gov
@@adamcarlesco1650 Because nobody reads "Truth in Lending Act.." and What Cost of Credit means? And what "Finance Charge" is.. You only supposed to "pay" finance Charge / TAX on Extension of Credit.. NOT "BALANCE DUE" bs.. These Corporations Violate Federal Consumer Law whole day long, by stealing your credit and by making you liable for what you are not by law.. Get a clue.
I live here near Phoenix.The budget will never balance out, until we stop our little visitors from the south from coming.
@@adamcarlesco1650 Am I the only one who thinks Congress requiring a balanced budget from DC is ironic?
My company is also in a hiring freeze and I was specifically told that we would prefer people to quit in the coming months but may have layoffs if that does not happen.
I hope people are not foolish enough to quit that way they can collect unemployment!
@@suniskys78 unemployment plus severance. Vs 0 if u quit.
LOL. Yeah, I'll bet they'd "Prefer people quit". Nah. Pass. Let them do layoffs and pay unemployment. "We'd prefer you just quit". LOL. Yeah. THAT'S gonna happen. (eyes roll)
@@suniskys78 Right?
My company, civil engineering firm, has been hiring like crazy. It’s hard finding competent people though.
I got a notification from AT&T about rates going up $5/month starting in June, unless you connect your debit card or bank account directly to pay your bill. In other words, and my AHA moment was that there must be a lot of people using credit cards to pay the bills, including WiFi. All makes sense now that this is trending.
I was one of those Capital One charge offs back in 2008 - never again
Every major company in the US has either recently done, is in the process of , or will soon have mass layoffs.
I'm afraid you are absolutely correct
First Discover. Now Capital One.
2 of the biggest 6 card issuers are reporting highest defaults since 2008-11 crisis.
Consumers getting stretched to breaking point.
The breaking point is already broken. Sad
I cry no tears for Discover. They canceled my card in 2012. I was never delinquent. Their so-called computer model said I would be a risk. Now they are sending me pre-approval offers every month.🚮 I put litter in its place.
Don't forget Capital One is currently pushing to aquire Discover. If they do think bailout and they no doubt want it all.
Well, now we know which two banks were enacting in the most predatory methods in order to open new credit accounts.
They were likely targeting & approving people that shouldn't have a credit card to begin with.
@@user-vj9wb2br7y The acquisition is announced but not completed, in fact it could still fall apart all together.
My husband was laid off from a big 4 tech firm last year, he has fired off around 1-2k resumes and only had a couple interviews for things like Costco and security, no one in tech is hiring, they're practically a ghost town. I work in healthcare and with rent prices we're still struggling. We are priced out of living here and we have to move to accommodate that. We don't have credit card debt, but we also don't spend because we don't want to pay the 25% interest on our cards. I'd say our consumer spending outside of groceries is a whopping 2% of our income.
I've worked in IT for the last 14 years which has been super stable with great pay until Jan 2024...I used to get 10 recruiters a day now i barely get 2-3 and usually its something that isn't close to the work i do...some recruiters have the audacity to offer $30-$40/hr less on a 6-12 mo contract, relocate to buckchuck nowhere and be in the office 3 days a week...gtfooh with that crap...never seen IT this bad or at least my 15 yrs working in IT
Yes, my husband is in IT, but he tells our kids that IT is dead as a career and that they need to do something else.
I've been in IT since 1977. It wasn't called that then, but that's what it was. Still in IT @ 68 and intend to stay until I'm pushing up posies. Love Sys Admin and end point support. I work on an Indian reservation. They love me and I them. Till death do us part. IT is great and will not go away. Learn to be kind, helpful and humble and you'll do fine.
So glad I payed off all my cards. Took the sale of an investment property to do it.
It’s a drag to sell a property. But apparently you’ve had charged your cards, so you had to responsibility to pay them. I hope you can regroup now and grow your assets. 🍀
Thank you for these videos... Since the mainstream media wont show us how tough this economy is... especially for younger generations. We have hope if we control our spend.
Media is helping corupted fake President Joe Biden make him look good thinking economy doing great. Blame all this on corrupted Fake President Joe Biden for destroying America's economy
Thank you so much for your research! Great job on reporting this credit card defaults very important information.
The Government is like an anchor tied around your neck while you try and tread water
Double, triple, and quadruple Like. 👍
Unemployment actually ticked up to 3.9% and new jobs were well under expectations. It will continue to be revised downwards in subsequent months and we will see about a year or two from now that the recession actually began Q3-Q4 2023.
Agreed 100%. Unfortunately, it's going to be quite a lot worse than 2008-2010. The math is never wrong. Asset values are so far out of whack relative to median income, there's no way to avoid the worst crash in US history. Hold cash, massive deflation is coming and the dollar is going to get 50% of its buying power back.
@@enthused7591wen
@@enthused7591 i wish haha
capital one cash back is great as long as you always pay it and don't carry a balance.
The unemployment numbers are totally bogus. They don't count the majority of people who are simply coasting in life. I am an upper middle class 50 some year old. Most of my friends have one or more kids between 25-40 living at home not looking for work. These are grown adults with Masters Degrees and even PhD's who live at home playing video games with no desire to work.
Thanks for the info
I have many friends in IT who are either out of work or are seriously under-employed
Cost Center, always goes first.
What's the difference?
@@couchwarrior2449 thanks for asking. I fixed that bad typing mistake. I meant to say under employed.
i have a card with them i keep open only because it's my oldest card and don't want closing it to affect my "age of accounts" factor on my credit score. i have one small monthly recurring charge on it. they chopped my credit limit down by like 60%, sent me a letter telling me it was because i don't use the limit.
I have zero balance on my Capital One card and haven’t ever had a balance. I opened my mail today and they lowered my credit limit. I have no idea what it was before but they can shove that card.
It sounds counter productive but less credit actually lowers your credit score.
Great macro analysis. Thank you.
We are a spend spend spend society. Credit cards are a huge problem
My whole life has been a recession
Smart man I just subscribed
Charge off is their write off deductions / and they still get to collect from the consumer. I don’t feel bad for the credit card companies. They are in bed with the installations
This was an amazing presentation, very well organized and one of the most informative videos I've seen all year. Thank you.
Once again, great job!
Excellent point. Well explained. I manage my credit scores very carefully with the long term in sight at all times. But how many of my peers do? Not many, according to your reserach. Happy to subscribe.
So insightful!! Thank you!
Redbook data was +6% this morning. Analysts lower expectations so companies can beat. Meanwhile Used Car prices down 14%. Its all a sham.
The LEI( leading economic indicator ) went negative in August 2023 at -4.5. Today it is -8.7 in March 2024. Anything below 0 indicates a recession is in progress. Does not predict the severity of a recession.
Shared on FB! More people need to know!!
Thank you so much
Over leveraged people are about to get screwed. The smart people people with loads of cash are going to scoop up some assets.
I hope so. I’ve been waiting.
Charge offs are not leading indicators, they are lagging. The consumer needs to be in default over x amount of time, then the company needs to file it. The charge offs mean the consumer has been problematic for at least 6 months.
No, I charge off occurs at 90 days not 180 days
@@jeanieologist4456..
The banks charge off time frame is generally between 120 and 180 days AFTER you become delinquent. It’s easily 6 months.
@@jeanieologist4456…
The time frame for back charge off is generally between 120 and 180 days after you become delinquent. It is easily 6 months from when the consumer starts using there credit due to financial trouble and the banks actual charge off.
The time frame for the banks charge off is generally between 120 and 180 days after you become delinquent. So it is easily 6 months or better by the time the consumer starts using their credit card due to financial trouble’s and the banks charge off. It’s lagging
And the thing that's not acknowledged is that this is supposed to happen *when* a full-blown recession is *underway* ...
... *not* while they say it hasn't materialized ... so a Depression is imminent.
Thank you for educating people especially now. I know what is going on but I want everyone else to as well so if a new person comes along and sees the truth bc of your video that is super fantastic!!!!
one of my younger cousin is in tech, he makes great money but he doesnt save anything. he has been like that since childhood. always want the newest things and better things. he just got second kid coming in another 4 months. i really worry about him and i told him many times to save up. he just says he would look for another job is he is laid off since his company gives upto 6 month severance. its pretty scary.
Six months isn't 3 to 4 years.
Crash may not be from one day to the next .. a crash is a slow decaying of all numbers to the downside .. that’s what we are seeing
I see a new Reventure upload. I watch.
Very interesting and informative..thank you!!
Thank you for your hard work !!