Sunday, October 29, 2023

That old cash flow problem


 (My new American Thinker post)

Years ago, I remember my late father, a lifelong banker, say that it's all "cash in and cash out."   
 
"Show me your cash flow sheet and I will tell you where you stand" was his wise advice.
 
Well, I was thinking about that when I saw this article about the U.S. economy.   
 
Check this out:
 
Americans are having a harder time making interest payments as savings are shrinking and a barrage of interest rate hikes by the Federal Reserve has jacked up the cost of financing.
 
Delinquency rates on credit cards, mortgages and auto payments have all been ticking up as the level of household savings, which swelled under stimulus payments handed out during the pandemic, have been declining.
 
Sixty-day car payment delinquencies for people with bad credit hit an all-time record of 6.1 percent in September, up from 5.8 percent in August, according to data from Fitch Ratings. That’s the highest level of lateness since the company first started tallying rates in 1994.
 
Ninety-day delinquency on credit cards has increased to 5.1 percent, up from 3.4 percent in the second quarter of last year, Federal Reserve data shows.
 
“The steady increase in delinquencies for three consecutive quarters signals stress on consumer ability to repay balances on general-purpose credit cards,” Herman Poon, a senior director at Fitch, wrote in a July analysis of consumer behavior.
 
Stress on consumer ability to repay?  That's what happens when you live in an inflationary cycle.  Also, it shows how words such as "recession" or "GDP" mean little to people.  What matters is my income and my expenses and how much is left in my pocket.   
 
At the moment, there is nothing left in the pocket and that's why this economy is a problem for President Biden.
 



Our 2016 Halloween chat with Leslie Eastman


CLICK THE LINK BELOW TO LISTEN:

Our annual Halloween chat with Leslie Eastman 10/26 by Silvio Canto Jr | News Podcasts:

Guest: Leslie Eastman joins us for our annual Halloween show......we will the website that Leslie has been the Project Manager for, which Girl Scout Emma Kahn created as part of her Gold Star Project: Black Cats Need Love! The purpose of the site is to encourage people to adopt black cats from animal shelters.............and a few stories about the 2016 election.......


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