Fears For US Economy Grow As Credit Card Lending Reaches 9-year High, The Major Stock Indices Are About To Come Undone!
CREDIT CRUNCH TWO? Fears for US economy grow as credit card lending reaches 9-year high
AMERICA’S economy is slowing while debt levels soar, in a scenario that has worrying similarities to the lead up to the financial crisis that brought the world to its knees.
The US economy grew far less than expected in the second quarter of 2016 taking the annualised rate to just 1.2 per cent – below expectations of 2.5 per cent.
At the same time, credit card and overdraft lending has soared to its highest level since 2007.
In just three months around $18bilion (£14bn) of credit card debts have been issued data showed, prompting fears lenders could soon find themselves swamped with loans that could go bad if the economy continues to deteriorate.
Nancy Bush, banking analyst at NAB research told the Financial Times: “In the present environment it’s probably a safe strategy, but as we saw with housing in 2007-08 that environment can change very rapidly… they need to be very careful.”
In June the US shocked with the worst set of job figures since the recovery out of the financial crisis.
The figure recovered in July, some experts believe the US is on course for another recession- and this would again have a devastating impact on the rest of the world.
James Carrick, economist for Legal and General Investment Management (LGIM) recently said the firm had started to reduce risk in the US amid “signs that things are going wrong”.
He issued a similar warning over the American economy in December 2007 and sees similarities between conditions then and now.
Eurozone shares hit worst level in weeks sparking mass stock dump of EU’s biggest names
EUROZONE shares hit a two-week low today as investors dumped stocks in some of the European Union’s biggest banks and companies.
Worst performer Commerzbank dived seven per cent, after the German bank warned its earnings would fall this year.
And Credit Suisse and Deutsche Bank fell 4.7 percent and 2.9 percent respectively.
The two firms are to be kicked off the eurozone’s bluechip banking index STOXX 50 on August 8 amid poor share performance.
The STOXX 600 was dragged down 0.8 per cent to its lowest level since July 19 amid disappointment from German retailer Metro and Chipmaker Infineon.
Cash for clunkers 7 year loans aren’t working anymore either…
“The Massive Prop Barely Holding up the US Economy Cracks”
“The so-called car recession”: Ford, AutoNation wave red flags
It was the second warning in two days: auto sales – last year one of the few booming sectors in the US economy – are exiting the freeway and turning south on a road full of potholes. And that would come at the worst possible time.
The debt-fueled growth of this economy is already fizzling. On Friday, first quarter GDP growth was revised down to 0.8% on an annualized basis. “Annualized” means that if this awful pace continues, growth for the year will be 0.8%! Second quarter growth was a meager 1.2% annualized. For the first half, annualized growth amounts to 0.9%, the worst in four years.
Business investment in equipment and structures, residential investment, and government investment all declined. Trade added a smidgen. But the inventory draw-down we’ve warned about for over a year, given how business inventories have bloated to crisis levels, has arrived with a vengeance, slashing 1.2% from GDP growth.
The next crisis will be like the 1929 crash, this is a serious financial crisis and nothing can stop it. Perhaps that’s why there is so much talk of war, another side show to cover up another global monetary collapse.
THE MAJOR STOCK INDICES ARE ABOUT TO COME UNDONE!
Govern yourself accordingly!
Its gonna be a mad rush for the door.
Big money is selling the rip your face off rallies….
It won’t be long now…before they let it go and are exposed.
‘Sell everything,’ DoubleLine’s Gundlach says
“The artist Christopher Wool has a word painting, ‘Sell the house, sell the car, sell the kids.’ That’s exactly how I feel sell everything. Nothing here looks good,” Gundlach said in a telephone interview. “The stock markets should be down massively but investors seem to have been hypnotized that nothing can go wrong.”
Gundlach, who oversees more than $100 billion at Los Angeles-based DoubleLine, said the firm went “maximum negative” on Treasurys on July 6 when the yield on the benchmark 10-year Treasury note hit 1.32 percent.
“We never short in our mainline strategies. We also never go to zero Treasurys. We went to lower weightings and change the duration,” Gundlach said.
Deutsche Bank, Credit Suisse Kicked out of Stoxx Europe 50 index
Bankruptcy Threat Brings Chilly Water to Atlantic City! Tax Base Shrinks from $35BN To $7BN
ATLANTIC CITY — In a normal year, residents and business owners in this seaside resort would be making preparations for a summer-long influx of tourists and gamblers. But this is in no way a normal year in Atlantic City.
The city’s government is on the verge of running out of money, even after persuading its employees to defer their paychecks for four weeks. Its mayor and City Council are engaged in a political standoff with Gov. Chris Christie that turned nasty and personal this week.
On Thursday, the speaker of the State Assembly, Vincent Prieto, a Democrat, added fuel to Mr. Christie’s ire by introducing legislation intended to help Atlantic City that the governor had vowed he would not sign. Mr. Christie, a Republican, has already sued the city’s government for failing to make timely payments to the local schools — even though the school board president said he opposed the lawsuit.
Oil is at a 12 year low and there is no headline on Bloomberg…FT…CNBC….NOWHERE….
Cocksuckers! (Assholes is too polite for the western media).
OPEC Daily Crude Basket Price Falls Below $39 for First Time in 12 Years
The cracks are appearing in the transnational banking control system that holds countries against each other while keeping the world population in their controllable fishbowl.
The walls are starting to crumble around the global transnational bankers in charge°. Hundreds have apparently been arrested, while these stories will not appear in mainstream media. Cracks are appearing.
High up Obama Admin office employee alleges US gov whistleblower protections are broken and he has been fighting his own DoD offensive.
°David Wilcox interview detailing hundreds of arrests: https://m.youtube.com/watch?v=IyXjHuu4414