Its Over

Credit card defaults are now rising FASTER than the 2008 Financial Crisis The situation is worse than you think

https://x.com/GameofTrades_/status/1825548697658380689

2/ Americans saved around 10% of their income annually from 1940s to 1970s But today, savings relative to income is contracting People are now spending more than they earn

https://x.com/GameofTrades_/status/1825548700925792525

3/ This shift in saving behavior has led consumers to amass over $1 trillion in credit card debt 2x the amount from 10 years ago

https://x.com/GameofTrades_/status/1825548704411246721

4/ In 2023, US consumer debt reached $17 trillion Mainly due to mortgages, resembling conditions before the 2008 Financial Crisis

https://x.com/GameofTrades_/status/1825548707590492659

5/ The strain is evident through the housing affordability index that hit its lowest level recorded Showing that buying a home is increasingly out of reach for many

https://x.com/GameofTrades_/status/1825548711151415707

6/ Home prices now cost more than 7x the yearly household income Which has made it extremely expensive to buy a home

https://x.com/GameofTrades_/status/1825548714372714646

7/ But there are additional reasons behind the financial struggles people face today Many have depleted their savings they had accumulated during the 2020 pandemic

https://x.com/GameofTrades_/status/1825548717690327459

8/ Today, the personal savings rate has dropped significantly While in the '60s and '70s, the savings rate exceeded 10%

https://x.com/GameofTrades_/status/1825548721461104903

9/ Consumers are burning through their savings at an unprecedented rate Credit card debt growth rate had reached 20% - the largest increase since 2000 And even now, it still continues to rise rapidly

https://x.com/GameofTrades_/status/1825548725017870637

10/ The situation has worsened by record-high credit card interest rates of 21.51% The cost of carrying this debt is nearly 2x what it was just a few years ago

https://x.com/GameofTrades_/status/1825548728352346258

11/ As a result, defaults have started to climb significantly in the past 2 years And are showing no signs of stopping

https://x.com/GameofTrades_/status/1825548731531559334

12/ In fact, credit card defaults from small lenders hit RECORD highs Crossing even the Dot Com bubble & Financial Crisis peaks

https://x.com/GameofTrades_/status/1825548734916432024

...the Consumer is tapping out.

...Yet we are still buying consumer related stocks and BNPL stocks.