Want to Know What's Really Happening With the Economy?

[vantexan]

 

[Box Ox]

A lot of commenters bring up the good point that our growing national debt will be even more unsustainable if rates stay high.

 

[vantexan]

A lot of commenters bring up the good point that our growing national debt will be even more unsustainable if rates stay high.

Just wish we could get it across that deficit spending, adding to the debt, takes away money that can be used to do some good. And printing money to make up the difference adds to the inflation.

 

[Babagounj]

Credit card delinquencies surge, almost 1 in 5 users maxed-out: Research

Credit card delinquencies are on the rise, as research from the New York Federal Reserve shows nearly a fifth of borrowers are “maxed-out.” According the new report, issued by the bank’s Center for…

thehill.com

According the new report, issued by the bank’s Center for Microeconomic Data, household debt rose by 1.1 percent, or $184 billion, in the first quarter of the year, bringing the total to $17.69 trillion.

“In the first quarter of 2024, credit card and auto loan transition rates into serious delinquency continued to rise across all age groups,” Joelle Scally, regional economic principal within the household and public policy research division at the bank, said in a statement.

“An increasing number of borrowers missed credit card payments, revealing worsening financial distress among some households,” Scally added.

 

[Over70irregs]

Credit card delinquencies surge, almost 1 in 5 users maxed-out: Research

Credit card delinquencies are on the rise, as research from the New York Federal Reserve shows nearly a fifth of borrowers are “maxed-out.” According the new report, issued by the bank’s Center for…

thehill.com

According the new report, issued by the bank’s Center for Microeconomic Data, household debt rose by 1.1 percent, or $184 billion, in the first quarter of the year, bringing the total to $17.69 trillion.

“In the first quarter of 2024, credit card and auto loan transition rates into serious delinquency continued to rise across all age groups,” Joelle Scally, regional economic principal within the household and public policy research division at the bank, said in a statement.

“An increasing number of borrowers missed credit card payments, revealing worsening financial distress among some households,” Scally added.

 

[Babagounj]

Let's throw in the massive amount of commercial loans that will be in default this year.

 

[Over70irregs]

Let's throw in the massive amount of commercial loans that will be in default this year.

Let them default then push incentives for small businesses from individuals to flourish.

 

[bbsam]

The worst part is that when it all falls apart, these bastard Titans of Industry will come crawling to the federal government wailing about the millions of workers who soon will lose their livelihood without the government assistance they have professed to have loathed for years.

Wash, rinse, repeat.

 

[vantexan]

Let them default then push incentives for small businesses from individuals to flourish.

The commercial loans he's referring to are primarily for commercial real estate. Office building mortgages. Not major corporations. The Covid shutdowns caused many companies to operate from home. After Covid many didn't return to the office because of the huge savings. Owners of the buildings have seen a drastic reduction in rent payments and can't meet their mortgage payments. This is a nationwide problem. And it's not just the owners of the office buildings suffering. This can and will cause bank collapses. Will have a huge ripple effect.

 

[Over70irregs]

The commercial loans he's referring to are primarily for commercial real estate. Office building mortgages. Not major corporations. The Covid shutdowns caused many companies to operate from home. After Covid many didn't return to the office because of the huge savings. Owners of the buildings have seen a drastic reduction in rent payments and can't meet their mortgage payments. This is a nationwide problem. And it's not just the owners of the office buildings suffering. This can and will cause bank collapses. Will have a huge ripple effect.

They are consolidating. Banking control will be slimmed down to choke off outliers. Buildings will be bought at bargain rates. They have shifted into housing for $. Affordable housing is intentional to populate lifetime renters.

 

[Brownwind]

They are consolidating. Banking control will be slimmed down to choke off outliers. Buildings will be bought at bargain rates. They have shifted into housing for $. Affordable housing is intentional to populate lifetime renters.

Appreciate your response but I’m not sure about shifting commercial properties to residential ones. A business partner I’m working with ran into some issues trying to do this. Zoning and permits are a major wall.

I personally would love to see more housing in existing buildings. Definitely would solve some problems with housing.

 

[oldngray]

 

[Over70irregs]

Appreciate your response but I’m not sure about shifting commercial properties to residential ones. A business partner I’m working with ran into some issues trying to do this. Zoning and permits are a major wall.

I personally would love to see more housing in existing buildings. Definitely would solve some problems with housing.

Zoning changes are happening. They can be slow. I was thinking allowing more commercial to be used for small biz swap meet style or walkable areas.

 

[Over70irregs]

View attachment 484783

 

[Brownwind]

Zoning changes are happening. They can be slow. I was thinking allowing more commercial to be used for small biz swap meet style or walkable areas.

Definitely would be a good fit in some areas. What the kids have to do just to find a place is getting out of control.

 

[Over70irregs]

Definitely would be a good fit in some areas. What the kids have to do just to find a place is getting out of control.

It’s over for a chunk of them. We have to get over this is my home area mentality. They are looking at 30++ years of labor to get a chunk. Look to less expensive areas. Let them appreciate then check back later.

 

[vantexan]

They are consolidating. Banking control will be slimmed down to choke off outliers. Buildings will be bought at bargain rates. They have shifted into housing for $. Affordable housing is intentional to populate lifetime renters.

No doubt office buildings will be repurposed as apartment buildings. The owners will have to do something to recoup their investments. But this isn't some grand scheme, some conspiracy. The owners would rather they be office buildings. A lot more profit.

 

[Over70irregs]

No doubt office buildings will be repurposed as apartment buildings. The owners will have to do something to recoup their investments. But this isn't some grand scheme, some conspiracy. The owners would rather they be office buildings. A lot more profit.

That profit was the on the back of cheap $. There is no more extended cheap $. No conspiracy but we are the yield now. Utilities Insurance Housing food water are where we are right now.

 

[vantexan]

That profit was the on the back of cheap $. There is no more extended cheap $. No conspiracy but we are the yield now. Utilities Insurance Housing food water are where we are right now.

Office rentals were never cheap. It's not about repurposing to residential for higher profits. It's about repurposing because they have no choice.

 

[Over70irregs]

Office rentals were never cheap. It's not about repurposing to residential for higher profits. It's about repurposing because they have no choice.

They are just selling to their buddies to get cheaper leases.