In recent times, the U.S. economy has witnessed a concerning upswing in credit card delinquencies. According to a critical report from Wells Fargo, a significant number of Americans are lagging on their monthly credit card bills, potentially indicating looming economic challenges. The surge in delinquencies is particularly noticeable among small lenders, as late payments at banks outside the top 100 by asset size hit unprecedented levels. This trend increases strain on small to medium banks, especially in light of the three major bank failures earlier this year. Parallelly, the New York Federal Reserve’s latest findings reveal that total credit card debt soared to a staggering $1.03 trillion between April to June, marking a historical high since Fed data tracking began in 2003. The confluence of higher credit card usage and rising delinquency rates is especially alarming in the context of the present-day high-interest rates. With the average credit card APR touching a record 20.63%, consumers could find themselves paying significantly more in the long term. The prevailing strong labor market further underscores the concern of rising delinquencies, and experts forecast a possible uptick as student loan payments restart after the recent Supreme Court decision. In light of these trends, the Federal Reserve’s decision to persistently hike interest rates to manage inflation and regulate the economy is critical. #CreditCard #USCreditCardDebt #FederalReserve #EconomicOutlook #InterestRates #ConsumerDebt
Follow the Money 0:00
Break It Down 7:25
Debt 11:10
What Can I Do? 13:53
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LEARN MORE ABOUT: Bank Failures
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If This Changes, Banks Collapse
The financial system is a complex network of institutions that plays a central role in the functioning of any economy. Banks, in particular, are the backbone of this system, facilitating the flow of money, credit, and investments. However, if certain changes occur, banks could face a severe collapse, resulting in disastrous consequences for individuals, businesses, and the entire economy.
One critical factor that could lead to such a collapse is a significant and unexpected decrease in public confidence in the banking sector. Banks heavily rely on public trust and faith in their ability to safeguard assets and provide reliable financial services. If this trust erodes, depositors may start withdrawing their funds en masse, fearing the loss of their hard-earned money.
A loss of confidence in banks can occur due to a variety of reasons. One common trigger is a financial crisis or recession, where banks suffer significant losses due to bad loans, investments, or internal mismanagement. The 2008 global financial crisis serves as a stark reminder of how such events can quickly spiral out of control and lead to a collapse in banks worldwide.
Additionally, changes in regulations and policies can also disrupt the stability of banks. If governments introduce sudden and drastic regulatory changes without proper planning or implementation, banks may struggle to adapt and maintain compliance. This can result in a liquidity crunch, making it difficult for banks to meet their obligations and provide loans and services to their customers.
Furthermore, rapid advancements in technology can pose significant challenges to traditional banking institutions. The rise of fintech companies and digital currencies has disrupted the traditional banking model, offering quicker, cheaper, and more convenient alternatives to customers. If banks fail to adapt and incorporate these technological innovations, they risk losing a substantial portion of their customer base, leading to a collapse of their business model.
In the event of a banking collapse, the consequences would be far-reaching and devastating. Individual depositors would face the risk of losing their savings, businesses would struggle to access credit, and the overall economic stability would be undermined. Governments would be forced to step in to prevent a complete meltdown, using taxpayer money to bail out failing banks. This, in turn, could lead to increased public debt, higher taxes, and a prolonged period of economic uncertainty.
Therefore, it is of utmost importance that banks maintain public trust, adapt to changing environments, and remain vigilant to potential risks. Regular stress tests, robust risk management systems, and transparent communication with stakeholders are essential to ensure the stability and resilience of the banking sector.
In conclusion, the collapse of banks is a worst-case scenario that could have severe consequences for individuals, businesses, and the economy as a whole. Factors such as loss of public confidence, regulatory changes, and technological disruptions can all contribute to such a collapse. To avoid this catastrophic outcome, banks must continually evolve and adapt to changing circumstances, while maintaining public trust and confidence in their operations. By doing so, they can ensure a stable and reliable financial system that benefits everyone.
I know this is complicated with the reserves but please take the time to invest in learning about this. Probably the most important factor on the financial system. I’ll keep bringing it to you even if it’s not going to get the clicks. I know it’s so key.
money's money
Most of your information is good but STFU with your Sinophobia. China is NOT collapsing.
"Barclays cut its forecast for China's 2023 gross domestic product (GDP) growth to 4.5% from 4.9% because of a faster-than-expected deterioration in the housing market, analysts at the bank said in a note on Tuesday."
Oh, gee. GDP GROWTH dropped to ONLY 4.5%. Yeah, that sounds like a real collapse.
To clarify Blackstone didn’t pause redemptions, they reduced redemptions. They also don’t claim to provide liquidity at all times. Every time they have pitched me in previous years they used “liquidity limits” as a method for keeping price stability in a down market. I’m not a Blackstone fan but the details a different.
Dang dude…11 years of doom and gloom. We’re still here..
George Gammon said that the bank doesn't even use our reserves to create loans or credit. They make loans out of thin air no matter what our deposits are. They will just steal our money when things get tough.
What concerns me here in oz is the reduction of bank branches and availability of cash in the public domain
But if you hold your money in real estate you also have to pay property tax. Say you own a $600k house in San Antonio today. You will owe the city 20k a year in property tax. But if you rent out of house, then you are on the hook for property damage, plus renters who might not pay rent. The pandemic and the lockdowns exposed how the government can screw passive income out of people with an eviction moratorium. So, I am just not sold on owning lots of property for these reasons. Furthermore, if gold is so good, then why is there any for sale? I would think there would be no gold available if it was the answer. It is a finite metal after all. I say buy stock in anything war related… bullets, shells, tanks, F-16 jets. That is what the rich people do and that is why the politicians want endless war.
20% interest rate is unbelievable. Any interest/ inflation rate is robbery. There’s a reason why Islam forbids usury.
Credit Unions vs Banks: different depositor insurance programs. FDIC is bankrupt not the other. Thanks loaned money for commercial real estate not credit unions. Banks could make loans with zero assets not credit unions. Credit unions didn't make 1% down loans for home 30 year mortgages.
My Gold bars wait for it all to go. I'm not going into the casino trying to use my savings to get rich. Forget it
IF BANKS FAIL YOU GET NOTHING. BANKS GET THEIR MONEY FIRST WHICH FDIC REALLY CANT COVER.
Thank you, David, for another great video.
Can you explain what you were referring to with this secret 50 year Switzerland deal which is usually 20 or 30 years? I was so confused there and I feel that the explanation was vague and sort of glossed over. Source?
They're going to ride this train until the wheels come off.
And when they do, sparks will fly.
FUCK BANKS, ALL YOU FAGS WITH "ONLY BILL MONEY", OR MINIMUM, FUCK YALL, YOU SUPPORT A BANK, F-U.
Isn't credit card debt at 20% effectively even worse with daily compounding and what I think is called the rule of 8?
Still having issues figuring out how to use the discord app!!!
Spot on my man
Americans should've stood up in the 60's when govt buried the JFK files for 75yrs and it's still hard to get them. Turns out, our govt whacked JFK. Then 2021 with the "pharma files." Now the "banker files." When does it end? It'll be before 2035 for certain 🙂
Why you are never talk about Canada, and Canadian banks?
The last bank collapse caused BTFP and a 20% rise in the stock market. Everybody invested in the stock market should be hoping for a bank collapse so that everything goes up another 20% again, over and over again. The bank collapses of 2008, caused the stock market to go up 300% over the next decade.