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Economics

The Fed Admits the Looming Debt Crisis, but Pretends All is Well

Written by Joe Scudder

The looming debt crisis can be seen in the increased number of credit card delinquencies, but they will “monitor” the situation.

We’ve taken another step toward our looming debt crisis as, American debt is the second quarter went up higher, having already surpassed in the first quarter the highest debt level reached before the 2008 financial crisis. But, don’t worry. This ominous sign will be watched closely by the Federal Reserve and they will… What? Warn us that the economy is about to tank? They never do that. They always tell us the economy is doing fine until it is too late!

Reuters reports, “Americans’ debt level notches a new record high.

The proportion of overall debt that was delinquent, at 4.8 percent, was on par with the previous quarter. However, a red flag was raised over the transitions of credit card balances into delinquency, which the New York Fed said “ticked up notably.”

Loosening lending standards have allowed borrowers with lower credit scores to access credit cards, Andrew Haughwout, an in-house economist, said in the report.

The New York Fed promised to watch this trend carefully because, “The current state of credit card delinquency flows can be an early indicator of future trends.”

So, don’t worry. The people who did nothing to stop the last crisis, and did nothing to stop our financial system from getting worse, and who made you bail them out, are looking out for you!

Read the rest of the Reuters story.

The views expressed in this opinion article are solely those of their author and are not necessarily either shared or endorsed by EagleRising.com


About the author

Joe Scudder

Joe Scudder is the "nom de plume" (or "nom de guerre") of a fifty-ish-year-old writer and stroke survivor. He lives in St Louis with his wife and still-at-home children. He has been a freelance writer and occasional political activist since the early nineties. He describes his politics as Tolkienesque.

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