Credit card companies offering deposit services to their customers are seeing an inflow of cash as people seek places other than small and regional banks to store their money.
Category: TRENDS ON THE U.S. ECONOMIC FRONT – May 16 2023
RETAILERS ABANDON DOWNTOWNS FOR THE SUBURBS
In April, downtown pedestrian traffic in the U.S. was about 25 percent less than during the same month in 2019, real estate software provider MRI Springboard reported.
WEALTHY AMERICANS ARE PAYING THE PRICE OF THE SLACK ECONOMY
Pity the rich: households earning more than $125,000 have seen their incomes and discretionary spending decline faster during the current economic malaise than those of households classified as low-income, according to Bank of America (BoA).
POTENTIAL HOMEBUYERS: LITTLE FOR SALE
Homeowners who might want to sell their houses feel trapped by the low interest rates they have on their mortgages and are unwilling to have to start a new mortgage with today’s far higher rates, The Wall Street Journal reported.
HOME PRICES FALL IN ALMOST A THIRD OF U.S. CITIES IN FIRST QUARTER
In this year’s first quarter, home prices fell in 31 percent of the 221 metro areas monitored by the National Association of Realtors (NAR).
INSURING U.S. TREASURIES AGAINST DEFAULT NOW COSTS MORE THAN FOR BRAZIL OR MEXICO
The price of credit default swaps, which insure holders against government default, are now more expensive for U.S. treasury securities than for the same protection in Brazil, Greece, or Mexico, Bloomberg reported.
RECESSION COULD THROW $1 TRILLION OF DEBT INTO DISTRESS
A U.S. recession would tighten the credit market and could throw more than 8 percent of corporate bonds—about $920 billion worth—into distress, the last step before default, according to a client note from Bank of America (BoA) analysts.
ECONOMIC UPDATE – MARKET OVERVIEW
It’s a global economic freak show. Add up the numbers. Take a trip to Argentina. With inflation running at over 100 percent and its peso down 23 percent against the U.S. dollar, Argentina’s central banksters raised its key interest rate yesterday by six percentage points to 97 percent.
LAYOFFS, PRODUCER PRICES INCREASE: WORST IS YET TO COME
Applications for unemployment benefits rose by 22,000 to 264,000 in the most recent week, the largest number since October 2021, following a series of dramatic staff cuts among Microsoft, Twitter, and other tech giants as well as companies in finance and other industries.