Credit Card Defaults Last rose 1994, 2006, slowly in 2016 and now a rapid incline of delinquency rate of 2.77%. I do foresee this trend to continue to the upside. The momentum of higher rates has contributed to the pressures. The rise may not be linear but the upside certainty appears to reach 3.25-3.5%. We'll keep monitoring
PRA Group is currently trading above a Support/Resistance Congestion Zone visible on the Weekly Timeframe, and at this zone it has formed a decently sized Bullish Shark pattern with a Bullish PPO Arrow as confirmation, and this all happens to align with the all-time 0.786 retrace. If this plays out, I think it could come back up to make around a 0.886 retrace,...
I think this chart is self-explanatory. Delinquency Rates have been falling to historic lows. The next move will be up.
What impact will that have on the overall economy?
What impact will that have on banks?
What impact will it have to gov't deficits and public debt?
What impact will it have on inflation?
What impact will it have on the dollar?
What impact will...
I expect Delinquency Rate On Commercial And Industrial loans to rise from historically low levels. While that may not appear as a bad thing moving into a more normal territory the impact that it will have may be a lot more than the economy can handle.
I can't help but think of Hyman Minsky
"Stability is inherently destabilizing" Hyman Minsky
Caution is in order!
The red indicator shows the level of delinquency for each quarter.
The blue index is the SPX.
We have an inverse correlation.
With the increase in interest rates around the world, the cost of money becomes more expensive.
The payment of loans becomes more expensive, so the percentage of defaulters tends to increase.
To pay off debts, positions in the equity...
