Bad news: Bank card delinquencies have hit a new record.
Reuters: Delinquencies in U.S. bank cards rose in the second quarter to 5 per cent of all accounts, while delinquencies in direct auto loans showed improvement, dropping to 2.46 per cent, the American Bankers Association said on Thursday.
The picture won’t change until the labour market improves and the economy picks up steam. This is going to take time,” said James Chessen, chief economist for the ABA.
Now before you jump up and down and say “See, all the green shoots people are freakin’ morons.” consider the point James Chessen is making, because it’s correct. Card deliquencies are tightly correlated with employment, and we all know that hasn’t turned around yet. So obviously this is bad news, but it’s not really new news.
And all that being said, if the jobs picture doesn’t turn around relatively soon, eventually that will probably torpedo any notions of a turnaround.