Banks in the US are tightening lending standards, leading to a decrease in access to credit for both individuals and businesses. This trend is reflected in the increase in delinquencies on credit cards, auto loans, and personal loans, reaching levels not seen since the Great Recession. Additionally, bank assets and lending are contracting at a rapid pace, potentially slowing down economic growth. The rise in credit card debt, which has surpassed $1 trillion, is exacerbated by the unprecedented rate hikes by the Federal Reserve, resulting in credit card rates exceeding 20%. As a result, the share of US households reporting difficulty in obtaining credit has reached a near-decade high, as per the New York Fed's consumer survey.
The share of U.S. households reporting that it's harder to obtain credit than one year ago is hovering near the high in the New York Fed's consumer survey, which is around 10 years old https://t.co/5NNJD4pTv0 https://t.co/cbFkkGxdSW
Credit card debt has been rising aggressively It has now crossed the $1 TRILLION This is happening at a time when the Fed has raised rates in an unprecedented manner Resulting in credit card rates reaching crossing 20% To make things worse, only 39% of Americans can afford a… https://t.co/rwluAj28D9 https://t.co/3K4tcBjqMt
Bank lending in the US is now falling for the first time since 2012 👀 https://t.co/mA3ogjvIKM
Bank assets in the US are contracting at a rapid pace 👀 For an economy that runs on debt, this is likely to slow growth quite a bit https://t.co/tNK8aXZyT0
WARNING: Bank credit has officially entered contraction territory After witnessing one of sharpest drops on record Since 1974, this has only happened ONE time: → During the 2008 Financial Crisis Back then, this indicaotr contracted to levels as low as -5% At the current… https://t.co/nJ5qKM2UfB https://t.co/vWAWIlVys7
BEWARE: Access to credit is becoming increasingly difficult for businesses More than 50% of domestic banks are now tightening lending standards Simaltanesouly, US interest rates are at the highest level since the pre-Financial Crisis period Current levels of credit tightening… https://t.co/d0cOIMNUiN https://t.co/CEh1bbr4TS
More Americans are behind on credit cards, auto loans, and personal loans now than at any time since the Great Recession.