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...Credit card delinquency rates are rising, lockdown savings are being drained, and student loan repayments are back, after a three-year pause....
...There are now American subsidies for EVs, but they don’t address broader supply chain chokepoints (like access to critical minerals needed for green batteries)....
...The hard data comes from car loan delinquency data. Card delinquency rates don’t look so great either, as my colleagues Stephen Gandel and Patrick Mathurin described in detail yesterday....
...But you are in the FOMC [Federal Open Market Committee], sitting around the table, you’re saying inflation has come down from the peak in 2022. That’s great. And went down from 9 per cent to roughly 3....
...Moreover, many American debtors are paying fixed rates and won’t get hit by hikes until they need to refinance their loans....
...The flipside to higher interest rates is people also want more for their savings....
...They have been able to charge more for loans because of the interest rates being increased by the Federal Reserve, but they haven’t been passing on these higher savings rates to depositors at the same rate...
...The Inter-American Development Bank on Sunday won board approval for the moves at its annual meeting in the Dominican Republic, including sweeping changes under which it will focus on fewer, bigger loans...
...Americans have gorged on billions of dollars of credit card debt over the past three years....
...Americans have run through their savings and are falling behind on their loans....
...“That’s one of the great debates that you can read about in the paper every day.”...
...Moreover, banks are much better positioned than they were in the runups to the Global Financial Crisis and Savings & Loan Crisis....
...In the US, according to numbers from the Federal Trade Commission, there were nearly 26,000 reported cases of abuse of advance-fee loans last year, costing victims nearly $75mn....
...But the shock should not be too great....
...JPMorgan set aside less than analysts anticipated for loan losses....
...Trump appointed Mark Calabria as the head of the Federal Housing Finance Agency [the Fannie and Freddie umbrella organisation]....
...Nickel, once a great “green” hope for miners, instead is one of the world’s worst-performing commodities over 12 months....
...Will McBride, vice-president of federal tax policy at the Tax Foundation, a US think-tank, says that inheritance tax “deters savings, investment, work — all the things that we have long understood contribute...
...The same would apply to the American electorate if it voted Trump back into office....
...The preliminary agreement, which includes $6.1bn in direct funding and up to $7.5bn in loans, will come under the 2022 Chips Act....
...Old cities industrialised on the right, California and its gold got statehood on the left — and a Great American Desert lay between....
...They do not necessarily turn around and spend their interest income on American goods and services. Their “propensity to consume” is low, in other words....
...This has caused great puzzlement among the political cognoscenti who keep telling Americans they have never had it so good....
...But the problem is that as long as these “pretend and extend” tactics are playing out, uncertainty will haunt the property sector, threatening to undermine American growth....
...“There could be major stacking of loans going on because the BNPL [loans] are not being reported,” said Armen Meyer, co-founder of the American Fintech Council trade group and former head of regulatory strategy...
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