Analysis
America’s Credit Card Just Got Declined
The U.S. economy runs on credit. When America’s credit engine sputters, so does the economy.
And right now, we’re majorly overdrawn.
Banks are tightening lending standards for consumer loans -- a reliable leading indicator for an economic recession. Over the last twelve months, the percent of U.S. banks reporting an increased willingness to make new consumer loans has plunged deep into negative territory:
Banks are wary of making new loans right now because consumer defaults are on the rise. The chart below shows the recent acceleration in delinquency rates on credit card debt:
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