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Crypto exchanges to fall under TradFi licensing — Australian Treasury proposal

The Australian treasury’s newly-released consultation paper will require to crypto exchanges to apply for financial services licence from the local financial…

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The Australian treasury's newly-released consultation paper will require to crypto exchanges to apply for financial services licence from the local financial regulator.

The Australian federal government may soon require cryptocurrency exchanges to hold a financial services license issued by the local financial regulator, the Australian Securities and Investment Commission (ASIC). 

In the newly-unveiled “Regulating digital asset platforms” consultation paper, released on Oct. 16, the Australian Treasury said that the new regulatory framework aims to address consumer harms while still supporting innovation in the digital asset sector.

Regulating digital asset platforms proposal. Source: The Australian Government Treasury

The core theme of the new regulatory framework is that it aims to regulate cryptocurrency exchanges and service providers instead of individual cryptocurrencies or tokens themselves. Additionally, the consultation paper explained that it will regulate crypto exchanges under pre-existing financial services laws, instead of crafting new crypto-specific rules.

Jonathon Miller, the Director of Kraken Australia expressed his disappointment at the latest developments, saying that the consultation paper was essentially "shoehorning" crypto in existing financial services regulation. 

"We’re behind our global peers when it comes to implementing a crypto framework, so I appreciate the need to have something in place locally to provide certainty to platforms like ours," Miller said. "Our concern is that this approach creates ample opportunities for the regulation to ignore the nuances of the technology."

"I’m hopeful that we can work collaboratively with the Government to make sure we don’t snuff out the benefits of future innovations in crypto that might fall outside the conventional ‘financial services’ box.

Liam Hennessey, partner at international law firm Clyde & Co said that while its clear that the Treasury is still "grappling" with all of the different types of tokens and services providers, it's crucial to remember that all new proposals set out in the consultation paper are still only suggestions, and are not legally binding recommendations. 

"Whatever the Treasury suggests, it is just that – a suggestion only. The Government is not bound to follow its recommendations, and there will be lobbying once the consultation paper comes out."

Hennessy said that the consultation paper arguably doesn't address the more pressing issues facing the crypto industry in Australia, like issues such as the recent slew of de-banking. 

"Many licensed digital assets exchanges, both domestic and international, are struggling to find adequate banking arrangements," said Hennessy. 

This is a developing story, and further information will be added as it becomes available.

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“There’s An Odd Chill In The Air” – Dallas Fed Respondents Warn Of “Pending Doom”

"There’s An Odd Chill In The Air" – Dallas Fed Respondents Warn Of "Pending Doom"

For the 22nd straight month, The Dallas Fed’s Manufacturing…

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"There's An Odd Chill In The Air" - Dallas Fed Respondents Warn Of "Pending Doom"

For the 22nd straight month, The Dallas Fed's Manufacturing Survey headline indicator was negative in February.

Despite it's bounce from January lows, the headline remained at -11.3 (while the six-months-ahead forecast also surged to +11.8 - highest since Feb 2022)...

Source: Bloomberg

Under the hood, everything seemed positive too...

Labor market measures suggested growth in employment, Wage and input costs continued to increase this month, while selling prices remained flat. The new orders index - a key measure of demand - shot up 18 points in January to 5.2. The raw materials prices index retreated five points to 15.4, falling further below average and indicative of more modest cost growth than usual.

Source: Bloomberg

So, labor good, prices down, new orders awesome - sounds great right?

Let's ask the business owners in the Dallas area how they feel...

"There's an odd chill in the air that we can't determine if it's election related, general economic malaise or fear of pending doom. It's very strange. Things are status quo with a bit of negative undertone, which is somewhat disturbing for business owners."

"Turmoil at the federal level is impacting funding."

"Sales were below projections for January and February; March does not look encouraging."

"The shortage of labor that was critical during the pandemic and after has turned to being merely very tight—meaning very difficult to find qualified personnel. Job jumping has ground to a halt."

"I have no idea what is going to happen."

"The economy is hurting the trucking business. The uncertainty is bothering people."

"Please lower interest rates."

So, 'the data' is positive, but 'the anecdotes' are a shitshow.

We'll let Jeff Bezos explain which to pay more attention to...

"The thing I have noticed is when the anecdotes and the data disagree, the anecdotes are usually right.

There's something wrong with the way you are measuring it."

One can't help but see the glaring gap between private reality and managed data's sense of it - makes you wonder if there's an agenda at work.

Even Goldman recently admitted that there is vast divide between how happy we should all be based on government-supplied data versus how we actually feel...

Bidenomics!?

Tyler Durden Mon, 02/26/2024 - 12:25

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Key Events This Week: All Eyes On Core PCE Amid Deluge Of Fed Speakers

Key Events This Week: All Eyes On Core PCE Amid Deluge Of Fed Speakers

After a relatively quiet week on the data front, things start to pick…

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Key Events This Week: All Eyes On Core PCE Amid Deluge Of Fed Speakers

After a relatively quiet week on the data front, things start to pick up again even as earnings season comes to a close.

In terms of key events, DB's Jim Reid writes that it’s hard to look too far beyond the latest core PCE print on Thursday after the recent strong CPI report and the strong relevant sub-components in the PPI. DB economists believe the MoM core print will be at 0.36% vs. 0.17% last time. This would make it the highest since last January. The fact that last January was 0.51% means that rolling out base effects should help the YoY rate edge down a tenth to 2.8%. However it's the monthly print that will be all important. Staying with inflation, preliminary CPI prints are also due from Germany and France (Thursday) and for the Eurozone (Friday).

Back to the US, we have new (today) and pending (Thursday) home sales with the focus on whether higher mortgage rates and bad weather in January has had a big impact. Then we have durable goods and consumer confidence (tomorrow), the second reading of Q4 GDP on Wednesday, the personal income and spending data (Thursday), and the ISM manufacturing data as well as unit auto sales as we close out the week by welcoming in a new month on Friday.

Friday is also the day that we could see a partial government shutdown if Congress fails to pass the 2024 budget that has already been agreed to. DB's economists think that it's possible we get a short-term continuing resolution for an extra week which would push it past the "Super Tuesday" primaries on the 5th and coincide with the deadline for the second tranche annual funding bills.

There is also a fair degree of Fed speak which you can see in the calendar at the end as usual alongside all the other data. Chinese PMIs on Friday might be the most interesting non-US data, and should include the lunar new year holidays in the sample period, so one to watch.

Courtesy of DB, here is a day-by-day calendar of events

Monday February 26

  • Data: US January new home sales, February Dallas Fed manufacturing activity, Japan January national CPI
  • Central banks: ECB's Stournaras and Vujcic speak, BoE's Breeden and Pill speak
  • Earnings: Workday, Zoom
  • Auctions: US 2-y Notes ($63bn), 5-y Notes ($64bn)

Tuesday February 27

  • Data: US January durable goods orders, February Conference Board consumer confidence, Richmond Fed manufacturing index, business conditions, Dallas fed services activity, Q4 house price purchase index, December FHFA house price index, Germany March GfK consumer confidence, France February consumer confidence, Eurozone January M3
  • Central banks: Fed's Schmid and Barr speak, BoE's Ramsden speaks
  • Earnings: Lowe's, American Tower, AutoZone, Ferrovial, Puma, Macy's
  • Auctions: US 7-y Notes ($42bn)

Wednesday February 28

  • Data: US January retail inventories, advance goods trade balance, Japan January industrial production, retail sales, Italy February manufacturing confidence, economic sentiment, consumer confidence, Eurozone February services, industrial, economic confidence, Canada Q4 current account balance
  • Central banks: Fed's Bostic, Collins and Williams speak, ECB's Muller speaks, BoE's Mann speaks
  • Earnings: Salesforce, Snowflake, Universal Music Group, Holcim, Baidu, Okta, SQM, Endeavor Group, Paramount Global

Thursday February 29

  • Data: US January PCE, personal income and spending, pending home sales, February MNI Chicago PMI, Kansas City Fed manufacturing activity, initial jobless claims, UK January net consumer credit, mortgage approvals, M4, February Lloyds business barometer, Japan January job-to-applicant ratio, jobless rate, housing starts, Italy December industrial sales, Germany February unemployment claims rate, CPI, France February CPI, January PPI, consumer spending, Canada Q4 GDP
  • Central banks: Fed's Bostic, Goolsbee and Mester speak, BoJ's Takata speaks
  • Earnings: AB InBev, Dell, Autodesk, Haleon, Leonardo, Covestro

Friday March 1

  • Data: US February ISM manufacturing index, Kansas City Fed services activity, total vehicle sales, January construction spending, China February official PMIs, Caixin manufacturing PMI, Japan February consumer confidence, Italy January unemployment rate, February CPI, manufacturing PMI, budget balance, new car registrations, 2023 GDP, Eurozone February CPI, January unemployment rate, Canada February manufacturing PMI
  • Central banks: Fed's Williams, Waller, Bostic, Daly and Kugler speak, ECB's Holzmann speaks, BoE's Pill speaks

* * *

The key economic data releases this week are the durable goods report on Tuesday, the core PCE report on Thursday, and the ISM manufacturing report on Friday. There are many speaking engagements from Fed officials this week, including governors Barr, Waller, and Kugler, as well as presidents Schmid, Bostic, Collins, Williams, Goolsbee, Mester, and Daly.

Monday, February 26

  • 10:00 AM New home sales, January (GS +3.5%, consensus +3.0%, last +8.0%)
  • 10:30 AM Dallas Fed manufacturing activity, February (consensus -14.0, last -27.4)
  • 07:40 PM Kansas City Fed President Schmid (FOMC non-voter) speaks: Kansas City Fed President Jeff Schmid will give a speech on the economic and monetary policy outlook at an event in Oklahoma City, OK. Text, Q&A, and livestream are expected.

Tuesday, February 27

  • 08:30 AM Durable goods orders, January preliminary (GS -6.0%, consensus -5.0%, last flat); Durable goods orders ex-transportation, January preliminary (GS flat, consensus +0.2%, last +0.5%); Core capital goods orders, January preliminary (GS -0.1%, consensus +0.1%, last +0.2%) ;Core capital goods shipments, January preliminary (GS +0.1%, consensus +0.2%, last flat): We estimate that durable goods orders fell 6.0% in the preliminary January report (mom sa), reflecting a lull in commercial aircraft orders that more than offsets a rebound in the defense category. We forecast soft details as well, including a 0.1% decline in core capital goods orders reflecting an end-of-year lull in global manufacturing activity and scope for order cancellations at the start of the year.
  • 09:00 AM FHFA house price index, December (consensus +0.3%, last +0.3%)
  • 09:00 AM S&P Case-Shiller 20-city home price index, December (GS +0.1%, consensus +0.2%, last +0.15%)
  • 09:05 AM Federal Reserve Vice Chair for Supervision Barr speaks: Federal Reserve Vice Chair for Supervision Michael Barr speaks at the Conference on Counterparty Credit Risk Management. Speech text and livestream are expected. On February 14, Barr said, “As Chair Powell indicated in his most recent press conference, my FOMC colleagues and I are confident we are on a path to 2% inflation, but we need to see continued good data before we can begin the process of reducing the federal funds rate. I fully support what he called a careful approach to considering policy normalization given current conditions…Given the limited historical experience with the growth and inflation dynamics we currently face, and no modern experience of emerging from a global pandemic, we have yet another reason to proceed carefully, as we have been doing.”
  • 10:00 AM Conference Board consumer confidence, February (GS 114.6, consensus 115.0, last 114.8)
  • 10:00 AM Richmond Fed manufacturing index, February (consensus -8, last -15)

Wednesday, February 28

  • 08:30 AM GDP, Q4 second release (GS +3.4%, consensus +3.3%, last +3.3%); Personal consumption, Q4 second release (GS +2.8%, consensus +2.7%, last +2.8%): We estimate a 0.1pp upward revision to Q4 GDP growth to +3.4% (qoq ar), reflecting upward revisions to government spending and healthcare consumption, partially offset by downward revisions to inventory investment, consumer goods spending, and recreation categories.
  • 08:30 AM Advance goods trade balance, January (GS -$86.0bn, consensus -$88.3bn, last -$87.9bn)
  • 08:30 AM Wholesale inventories, January preliminary (consensus +0.2%, last +0.4%)
  • 12:00 PM Atlanta Fed President Bostic (FOMC voter) speaks: Atlanta Fed President Raphael Bostic will answer questions on the economic outlook and monetary policy at a fireside chat in Roswell, GA. Q&A is expected. On February 16, when discussing when to begin cutting the fed funds rate, Bostic said, “A year ago, six months ago, I was in the fourth quarter. So, we’ve seen tremendous progress, and I’m hopeful that that continues. If that continues, I’ll be willing to pull it forward even further.” He added that he could “for sure” see three cuts instead of the two he anticipated in the latest Summary of Economic Projections. On February 15, Bostic said, “The evidence from data, our surveys, and our outreach says that victory is not clearly in hand and leaves me not yet comfortable that inflation is inexorably declining to our 2% objective. That may be true for some time, even if the January CPI report turns out to be an aberration…I require more confidence before declaring victory in this fight for price stability...My expectation is that the rate of inflation will continue to decline, but more slowly than the pace implied by where the markets signal monetary policy should be…Right now, a strong labor market and macroeconomy offer the chance to execute these policy decisions without oppressive urgency.”
  • 12:15 PM Boston Fed President Collins (FOMC non-voter) speaks: Boston Fed President Susan Collins will give remarks, participate in a fireside chat, and take audience questions in an event hosted by the Center for Business, Government & Society. Speech text, Q&A, and livestream are expected. On February 7, Collins said, “Seeing sustained, broadening signs of progress should provide the necessary confidence I would need to begin a methodical adjustment to our policy stance…it will likely become appropriate to begin easing policy restraint later this year…a methodical, forward-looking strategy that eases policy gradually will provide the flexibility to manage risks, while promoting stable prices and maximum employment.”
  • 12:45 PM New York Fed President Williams (FOMC voter) speaks: New York Fed President John Williams will deliver keynote remarks at the Long Island Association Regional Economic Briefing. Speech text, Q&A with media, and livestream are expected. On February 23, Williams said, “At some point, I think it will be appropriate to pull back on restrictive monetary policy, likely later this year. But it’s really about reading that data and looking for consistent signs that inflation is not only coming down but is moving towards that 2% longer-run goal.” He added, “Rate hikes are not my base case. But clearly, if fundamentally the economic outlook changes in a material, significant way — either with inflation not showing signs of moving toward the 2% longer-run goal on a sustained basis or other indicators that monetary policy is not having the needed or desired effects in order to achieve that goal — then you have to rethink that.”

Thursday, February 29

  • 08:30 AM Personal income, January (GS +0.5%, consensus +0.4%, last +0.3%); Personal spending, January (GS -0.1%, consensus +0.2%, last +0.7%); PCE price index (mom), January (GS +0.36%, consensus +0.3%, last +0.2%); PCE price index (yoy), January (GS +2.39%, consensus +2.4%, last +2.6%); Core PCE price index (mom), January (GS +0.43%, consensus +0.4%, last +0.2%); Core PCE price index (yoy), January (GS +2.85%, consensus +2.8%, last +2.9%): We estimate that personal spending declined 0.1% and that personal income increased 0.5% in January. We estimate that the core PCE price index rose 0.43% in January, corresponding to a year-over-year rate of +2.85%. Additionally, we expect that the headline PCE price index rose 0.36%, or +2.39% from a year earlier. Our forecast is consistent with a 0.22% increase in our trimmed core PCE measure for January (vs. 0.20% in December and 0.12% in November).
  • 08:30 AM Initial jobless claims, week ended February 24 (GS 200k, consensus 210k, last 201k); Continuing jobless claims, week ended February 17 (GS 1,860k, consensus 1,874k, last 1,862k)
  • 10:00 AM Pending home sales, January (GS +1.0%, consensus +1.1%, last +8.3%)
  • 10:50 AM Atlanta Fed President Bostic (FOMC voter) speaks: Atlanta Fed President Raphael Bostic will participate in a fireside chat at the 2024 Banking Outlook Conference on the economic outlook, monetary policy, and state of the banking industry. Q&A and Livestream are expected.
  • 11:00 AM Kansas City Fed manufacturing index, February (last -9)
  • 11:00 AM Chicago Fed President Goolsbee (FOMC non-voter) speaks: Chicago Fed President Austan Goolsbee will join a virtual event for remarks on “Monetary Policy at an Unusual Time.” Q&A and livestream are expected. On February 14, Goolsbee said, “Let’s not get amped up on one month of CPI that was higher than it was expected to be…If you see inflation go up a little bit that doesn't mean that we're not on the target to get to 2%. We can still be on the path even if we have some increases and some ups and downs…so let's not get too flipped out." On February 5, Goolsbee said, “We’ve had seven months of really quite good inflation reports, right around or even below the Fed’s target. So if we just keep getting more data like what we have gotten, I believe that we should well be on the path to normalization.”
  • 01:15 PM Cleveland Fed President Mester (FOMC voter) speaks: Cleveland Fed President Loretta Mester will speak at the Columbia University School of International and Public Affairs and Bank Policy Institute's 2024 Bank Regulation Research Conference. Text and Q&A are expected. On February 6, Mester said, “It would be a mistake to move rates down too soon or too quickly without sufficient evidence that inflation was on a sustainable and timely path back to 2%. If the economy evolves as expected, I think we will gain that confidence later this year, and then we can begin moving rates down.”
  • 08:10 PM New York Fed President Williams (FOMC voter) speaks: New York Fed President John Williams will participate in a moderated discussion at an event hosted by the Citizens Budget Commission. Q&A and livestream are expected.

Friday, March 1

  • 09:45 AM S&P Global US manufacturing PMI, February final (consensus 51.5, last 51.5)
  • 10:00 AM Construction spending, January (GS +0.6%, consensus +0.2%, last +0.9%)
  • 10:00 AM University of Michigan consumer sentiment, February final (GS 79.2, consensus 79.6, last 79.6); University of Michigan 5-10-year inflation expectations, February final (GS 2.9%, consensus 2.9%, last 2.9%): We estimate the University of Michigan consumer sentiment index declined to 79.2 in the final February reading and estimate the report's measure of long-term inflation expectations will be unrevised at 2.9%.
  • 10:00 AM ISM manufacturing index, February (GS 49.1, consensus 49.5, last 49.1): We estimate the ISM manufacturing index was unchanged at 49.1 in February, as negative residual seasonality offsets a rebound in global manufacturing activity and in other business surveys. Our GS manufacturing tracker rose 4.2pt to 50.4.
  • 10:15 AM Fed Governor Waller and Dallas Fed President Logan (FOMC non-voter) speak: Fed Governor Christopher Waller and Dallas Fed President Lorie Logan will each respond to a paper titled "Quantitative Tightening Around the Globe: What Have We Learned?" at the 2024 US Monetary Policy Forum in New York. Speech text and Q&A are expected. On February 22, Waller said, “The strength of the economy and the recent data we have received on inflation mean it is appropriate to be patient, careful, methodical, deliberative – pick your favorite synonym. Whatever word you pick, they all translate to one idea: What’s the rush?” He added, “I am going to need to see a couple more months of inflation data to be sure that January was a fluke and that we are still on track to price stability…My conjecture is that, in the absence of a major economic shock, delaying rate cuts by a few months should not have a substantial impact on the real economy in the near term. And I think I have shown that acting too soon could squander our progress in inflation and risk considerable harm to the economy.” On January 6, Logan said, “If we don’t maintain sufficiently tight financial conditions, there is a risk that inflation will pick back up and reverse the progress we’ve made…In light of the easing in financial conditions in recent months, we shouldn’t take the possibility of another rate increase off the table just yet.”
  • 12:15 PM Atlanta Fed President Bostic (FOMC voter) speaks: Atlanta Fed President Raphael Bostic will speak in a moderated conversation on topics including the economic outlook and real estate trends at a conference in Orlando. Q&A is expected.
  • 01:30 PM San Francisco Fed President Daly (FOMC voter) speaks: San Francisco Fed President Mary Daly will participate in a panel discussion on "AI & the Labor Market" at the 2024 US Monetary Policy Forum, moderated by Kansas City Fed President Jeffrey Schmid. Text and Q&A are expected. On February 16, Daly said, “To finish the job will take fortitude. We will need to resist the temptation to act quickly when patience is needed and be prepared to respond agilely as the economy evolves…Price stability is within sight. But there is more work to do.” Daly added that three 25bps cuts to the fed funds rate was a “reasonable baseline.”
  • 03:30 PM Fed Governor Kugler speaks: Fed Governor Adriana Kugler will speak about pursuing the dual mandate at the 2024 Stanford Institute for Economic Policy Research Economic Summit. Speech text, Q&A, and livestream are expected. On February 7, Kugler said, “At some point, the continued cooling of inflation and labor markets may make it appropriate to reduce the target range for the federal funds rate. On the other hand, if progress on disinflation stalls, it may be appropriate to hold the target range steady at its current level for longer to ensure continued progress on our dual mandate.”
  • 05:00 PM Lightweight motor vehicle sales, February (GS 15.3mn, consensus 15.4mn, last 15.0mn)

Source: DB, BofA, Goldman

Tyler Durden Mon, 02/26/2024 - 10:05

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A Blue State Exodus: Who Can Afford To Be A Liberal

A Blue State Exodus: Who Can Afford To Be A Liberal

By Mish Shedlock of MishTalk

Is the blue state exodus from California, New York, and…

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A Blue State Exodus: Who Can Afford To Be A Liberal

By Mish Shedlock of MishTalk

Is the blue state exodus from California, New York, and Illinois making red states like Florida, Texas, and South Carolina more liberal? Studies suggest the answer is no.

Net migration on a percentage basis from Apartment List

Still Ruby Red

South Carolina is one of the beneficiaries of a blue state exodus. But contrary to popular theory, South Carolina Is Still Ruby Red.

Fed up with pandemic restrictions, Sandy Zal uprooted her family from Schenectady, N.Y., three years ago and moved here because of its Republican tilt. She and her husband named their new company Freedom Window Tinting, a nod to South Carolina’s ethos.

The Zals are part of a migration wave that has kept South Carolina ruby red despite an influx of newcomers from blue states. A Wall Street Journal analysis of census data found that a third of the state’s new residents between 2017 and 2021 hailed from blue states and a quarter from red ones, according to census data. The remainder came from closely divided states, including nearby Georgia and North Carolina, or are immigrants.

The Palmetto State is a prime example of why a yearslong wave of migration to the South has largely failed to change its partisan tint. In Florida, for instance, 48% of people who moved there between 2017 and 2021 came from blue states while 29% came from red states, Census figures show. Among those who registered to vote, 44% are Republicans, 25% are Democrats and 28% are nonpartisan, according to L2 data. Texas also has a heavier flow of newcomers from blue states but a greater share who L2 data estimates are Republican.

When you’re younger you can afford to be a liberal—now you can’t,” he said. John Lush, who is no fan of Trump and will vote for Haley on Saturday, has enjoyed living under South Carolina’s conservative government. “The state politics are very nice. It’s agreeable,” he said.

Who Can Afford to Be a Liberal?

I disagree with the comment by Lush, “When you’re younger you can afford to be a liberal.”

Instead, I propose the first group of people who can most afford to be liberals are the political class that takes advantage of young idealistic fools. The process is accurately called “vote buying”.

The second group that can afford to be liberals are the arrogant elites such as Bill Gates and George Soros.

Understanding Blue State Exodus

Blue state exodus is largely Red or Independent because Republicans and Independents make up the majority of people with enough money to afford a house and choose to do so in a non-blue state for tax purposes.

As a result of blue state exodus, the blue states will get bluer and bluer until the whole thing blows up in the faces of blue state politicians.

What Metro Areas Are Attracting the Most New Renters?

Net migration on an absolute basis from Apartment List

The great escape from Blue states to Red states continued in 2023. California, New York, Illinois, New Jersey, and Massachusetts are the five top states people are fleeing on an absolute basis according to a National Apartment List report on migration.

Top Inbound Metro Areas

Can the young afford to be liberal? The answer is a resounding no in relation to other age groups. Stress is easy to spot by demographics.

Credit Card and Auto Delinquencies Soar

Credit card debt surged to a record high in the fourth quarter. Even more troubling is a steep climb in 90 day or longer delinquencies.

Record High Credit Card Debt

Credit card debt rose to a new record high of $1.13 trillion, up $50 billion in the quarter. Even more troubling is the surge in serious delinquencies, defined as 90 days or more past due. For nearly all age groups, serious delinquencies are the highest since 2011 at best.

Auto Loan Delinquencies

Serious delinquencies on auto loans have jumped from under 3 percent in mid-2021 to to 5 percent at the end of 2023 for age group 18-29. Age group 30-39 is also troubling. Serious delinquencies for age groups 18-29 and 30-39 are at the highest levels since 2010.

Generational Homeownership Rates

The above chart is from the Apartment List’s 2023 Millennial Homeownership Report

Those struggling with rent are more likely to Millennials and Zoomers than Generation X, Baby Boomers, or members of the Silent Generation.

The same age groups struggling with credit card and auto delinquencies.

Many Are Addicted to “Buy Now, Pay Later” Plans

Buy Now Pay Later, BNPL, plans are increasingly popular. It’s another sign of consumer credit stress.

The study did not break things down by home owners vs renters, but I strongly suspect most of the BNPL use is by renters.

There Are Two Economies But Only One Interest Rate

On average, the economy looks OK. But averages are misleading.

Homeowners are in a position to sell a home and buy one elsewhere, often for cash. They are predominately older. The have-nots cannot afford a home and are trapped where they are.

Tyler Durden Sun, 02/25/2024 - 10:30

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