💳 📈 Credit Card Delinquencies on the Rise!
Happy Sunday!
Hope you’re partaking in today’s Super Bowl festivities! Of course, being from the Bay Area, I have the 49ers! Who do you have tonight?
Enjoy today’s edition!
- Humphrey, Tim, & Rickie
Market Report
Credit Card, Auto Loan Delinquency Rates Rise in NY Fed Report
According to the Federal Reserve, American households accumulated more debt towards the end of last year, with a notable rise in delinquencies for credit card and auto loan payments, now surpassing pre-pandemic levels.
Credit card balances reached $1.13 trillion and auto loans $1.61 trillion, the highest since 2003, while mortgage debt also hit a record high.
Particularly affected are consumers aged 30 to 39, who are facing increased financial stress, partly due to juggling student loan payments alongside other debts.
U.S. deficit will soar in the next decade, new projections show
The Congressional Budget Office (CBO) is forecasting a significant increase in the U.S. deficit over the next decade, with projections indicating a rise from $1.6 trillion this year to $2.6 trillion by 2034, largely due to soaring interest payments.
The growing deficit, partly fueled by the Fed's interest rate policies to combat inflation, will see public debt reach an unprecedented 116% of GDP by 2034.
Additionally, the aging population and increased spending on Social Security and Medicare are identified as significant contributors to the deficit expansion, with interest costs projected to surpass discretionary spending.
Disney, Fox and Warner’s venture to bundle live sports content
Executives at Disney's ESPN, Fox, and Warner Bros. Discovery surprised the NFL and the sports media industry by announcing a new joint streaming service for live sports programming, aiming to address the challenge of transitioning sports broadcasting to the streaming economy amidst declining cable subscriptions.
The service, set to launch this fall, will feature content from 14 networks including NFL, NBA, and MLB games, but will not encompass the entire sports landscape, leaving out content from Comcast’s NBC and Paramount’s CBS.
The venture aims to attract subscribers with a pricepoint around $50 a month, banking on the appeal of a consolidated sports streaming option in a rapidly evolving market.
Forecast Ahead
Big Number: Bezos sells $2bn worth of Amazon stock
Jeff Bezos sold 12 million shares of the company's stock for the first time since 2021, netting over $2 billion. This sale is part of a larger plan disclosed on February 2nd, where Bezos intends to sell up to 50 million shares within the next year.
Bezos has sold more than $30 billion in Amazon shares since 2002, with significant portions sold in 2020 and 2021, and has also donated shares worth about $230 million to nonprofits in November.