Economy

Most Wall Street forecasters are expecting a soft landing as opposed to a recession, but surging credit card delinquencies have been historically associated with recessions and lately the numbers of delinquencies are surging to an all time high. Rising late payments put more pressure on small and medium sized banks, and that is concerning, especially when markets are weary of bank stability and rising debt levels in the US. Most forecasters still believe that there is some cushion in the economy, but consumers are exhausting their credit, while income growth has slowed down substantially. 

We are seeing the effects of not only the damage caused by the long lasting effects of the pandemic which halted the world economy, but also how the impact that growing credit card limits, and the lack of stricter underwriting processes on credit approvals have impacted the economy.