A ridiculous MSM story today actually argued that $1 trillion of U.S. consumer credit card debt is a positive sign for U.S. consumers. We prefer to report reality and truth.
“We’ll get chastised for being mean. It’s like being a good parent,” Keith McCullough explains in this clip from The Macro Show. “A good parent doesn’t BS you all the time. They’re honest and open with their children. They talk about the reality of things.”
Common sense would indicate people paying off their credit cards is a good thing – not taking on more and more debt, particularly when interest rates are as high as they are.
“The interest rate on a credit card is above 20%. Going back to the 1990s, the peak was 16%, not 21-23%. U.S. consumers are tapped out,” McCullough says.
For the first time in over a decade, people didn’t pay off credit card debt going from 4Q 2022 to 1Q 2023. Things didn’t get any better in 2Q. 30+ day delinquency rates for Capital One, Synchrony and Discover all increased from June 2022 to May 2023.
“Wait until we get the June, July and August numbers. It’s going to be terrible,” McCullough adds.
Watch the full clip above.