Aug
03

Disturbing Delinquencies

debt Despite a roaring labor market, the credit cycle is turning. After peaking at 4.85% in 09Q2, consumer loan delinquency rates steadily declined to 2% and remained there from 15Q1 through 16Q1. Since then, they have steadily risen and are now at 2.2%. The story’s much the same for credit card delinquencies and auto loans. While the rates are still low, what’s worrying is unemployment is low and wages are rising.

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Comments

  1. I didn’t think wages had really risen all that much . .
    Seems that job growth is good, but like all things regional.

  2. Could it be that people are feeling confident enough to take on more debt? Just a thought.
    Thanks for all the great insight, Elliot.
    CHEERS! Greg in Colorado.

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