Credit Card Shutdowns Begin: The First Sign of Economic Collapse

Another recession warning and this one is related to brewing problems with unemployment. The September payroll report has put mainstream focus back on a soft- or no-landing scenario, but we’ve been there before not long ago. Meanwhile, apart from the unreliable payroll figure everything else continues to point to bigger trouble, including Americans who have stopped using their credit cards.

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ABC News Blockbuster jobs report flexes economic strength, defying Americans’ lukewarm attitudes
https://abcnews.go.com/Business/blockbuster-jobs-report-flexes-economic-strength-defying-americans/story?id=108887637

Challenger, Gray & Christmas Job Cuts Flat in September 2024 from August; YTD Surpasses 2023
https://www.challengergray.com/blog/job-cuts-flat-in-september-2024-from-august-ytd-surpasses-2023/

Robert Shimer Reassessing the Ins and Outs of Unemployment
https://home.uchicago.edu/~shimer/wp/reassess.pdf

Twitter: https://twitter.com/JeffSnider_EDU

45 Comments

  1. Every crash/collapse brings with it an equivalent market chance if you are early informed and equipped, I've seen folks amass up to $1m amid crisis, and even pull it off easily in a favorable economy. Unequivocally, the bubble/collapse is getting somebody somewhere rich

  2. The avg. American is having a tough time, I know I am not alone. There are others in same position as me. By certain statistics: 22% of americans have no retirement savings. 64% are worried that they will not have money in latter years while 47% of adults who are not yet retired think they have to work part-time in retirement. How can I best grow the 100k I have saved seperately outside retirement access which of course had depleted over the years?

  3. It’s amazing really. We have a financial crisis, caused by greedy, reckless financial institutions. Congress passes legislation requiring those institutions to be less greedy and reckless. The institutions then lobby to have those restrictions removed, usually in the name of “remaining competitive”. This leads to another financial crisis. It’s completely predictable, and we have been doing this dance since the Great Depression almost 100 years ago.

  4. Hey Jeff, remember when you said a nickel of Contango in the oil market was "signaling something massive" on Feb 6?

    USO +11, SPY +75, and CL is seventy cents in Backwardation currently.

    You know nothing!

  5. Another correlation not causation video, another wrong prediction. Credit card interest rates have reached record highs, making borrowing more expensive, and the lag effect of the people maxing credit cards at record rates has finally caught up with them. Rates go down, companies revised earnings to the upside so I think you should admit the recession might never come, regardless of how many nay sayers are outthere.

  6. The economic growth is directly related to the energy consumption of a country. Put it simply, growth is tightly related to fossil fuel consumption. Fossil fuel is food for the machines and machines are what make everything in an economy.
    Fossil fuel, besides durably affecting the climate, are also finite, in a finite world.

    The aberrant concept of infinite growth in a finite world must end, and it will regardless, that is mathematical.

  7. Credit cards aren't being used because so many people are out of work or worried about it imo. I haven't been using mine very much for two years since I was laid off back then and am still looking for work….

  8. Restaurant worker. Businesses are cutting employee hours and customers tipping less. The American people are going to need to tighten their belts. Dark times ahead.

  9. Every crash/collapse brings with it an equivalent market chance if you are early informed and equipped, I've seen folks amass up to $1m amid crisis, and even pull it off easily in a favorable economy. Unequivocally, the bubble/collapse is getting somebody somewhere rich