PEOPLE CAN NO LONGER PAY THEIR BILLS!

(9/6/2024)

1. 🏦 Credit card delinquency rates for major US issuers rose to an average of 1.34% in July 2023, up 17 basis points from the previous year, signaling increasing financial strain on consumers.

2. 💳 Americans are accumulating credit card debt at a record pace of $1.14 trillion, up 5.8% year-over-year, with the lowest earners being the hardest hit due to the high cost of living.

3. 🏘️ Housing costs are a primary driver of credit card debt, with shelter accounting for 90% of the rise in the Consumer Price Index in July 2023, increasing by 4%.

4. 📈 The Federal Reserve's interest rate hikes to combat inflation are exacerbating economic inequality by disproportionately affecting poor people who rely on credit cards for basic needs.

5. 📚 Financial education is crucial for getting out of debt, and using debt strategically while keeping certain assets debt-free can be an effective way to build wealth.

The oil Price is...

(9/6/2024)

1. 🛢️ Crude oil prices are settling around $69 per barrel, indicating a slowing global economy and approaching recession, with fewer buyers and reduced asset purchases like vacations and stock market investments.

2. 🌎 The current oil price decline is part of a 50-100 year global economic cycle, affecting the entire world similarly to the 2008 Great Recession, which flowed from Europe into America but had a global impact.

3. 📉 Oil demand is faltering globally, particularly in China, sparking an oil price sell-off as recession fears drive down asset prices worldwide, not just in the US or Europe.

4. 🛢️ Crude oil inventories fell by 7 million barrels in the week ending August 30, while gasoline stockpiles rose by 800,000 barrels, according to the Energy Information Administration, supporting oil prices.

5. 📊 As the economy slows, oil prices tend to decline, while gold, silver, and Bitcoin prices slow down from their meteoric rise and then fall, as recession fears reduce speculation and spending.

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European markets are starting to make their move

(9/6/2024)

1. 🔻 European stock markets are facing a fourth consecutive day of losses, with major indices like Euro Stoxx 600 (-2.27%), Dax (-1.75%), CAC 40 (-2.61%), and FTSE 100 (-1.61%) signaling a potential weekly close in negative territory.

2. 💻 The US stock market's volatility is heavily influenced by a handful of tech stocks, exemplified by Nvidia's chipmaker tech selloff causing a 99.5% plunge in shares of Dutch chip equipment manufacturer ASML to a one-month low.

3. 🛢️ Energy stocks like Royal Dutch Shell (-4.3%), Total (-2.56%), and BP (-4.21%) are experiencing significant declines, indicating the stock market is signaling a broader economic slowdown.

4. 📊 The 200-day moving average serves as a crucial technical indicator for stocks, with many markets hitting it from below, potentially signaling a negative short-term outlook.

5. 💱 The NInja suggests that a crypto market rally could occur if Jerome Powell lowers interest rates, while also emphasizing the importance of moving assets to cash in the current market climate.

BIG changes in Germany

(9/5/2024)

1. 🗳️ The AfD party in Germany is investigating alleged computer errors that cost them a parliamentary seat and calling for an end to mail-in ballots, citing security concerns and shady practices.

2. 🌍 A global trend of governments seeking to control elections is emerging, with examples from Germany's AfD and California's Governor Newsom wanting to stop ID checks at polling stations.

3. 🧑‍⚖️ The AfD's loss of a blocking majority in Saxony due to alleged software glitches highlights the importance of judicial appointments and how governments aim to influence election outcomes.

4. 🔍 AfD's parliamentary group leader is demanding an exact error analysis of the software glitch that resulted in seat changes for multiple parties in the Saxony elections.

5. 🔐 The call for ending mail-in ballots in Germany reflects a broader push for transparency and accountability in election processes, with the AfD threatening legal action if irregularities are found.

This is it...

(9/5/2024)

1. 🏘️ Major US cities are experiencing significant housing price declines, with high-end properties falling first and a gradual decrease in prices across the market, particularly in Austin, Miami, San Francisco, and Boise.

2. 💵 During a recession, cash becomes the safest asset in the short term, as investors move to liquid positions, despite the dollar's long-term declining value.

3. 📉 US stock index futures fell following poor manufacturing PMI and ISM data, signaling a potential continuation of the Wall Street sell-off and raising recession concerns.

4. 🏦 The Atlanta Fed president's readiness to lower interest rates despite above-target inflation could potentially lead to mini-hyperinflation in the future.

5. 💼 K-pop's proposal to increase capital gains tax from 40% to 28% may discourage investment, as a majority of Americans pay this tax and could reduce their market participation if rates increase.

Should you buy a house now or wait

(9/5/2024)

Key insights

1. 🏠 Buying a home can be advantageous at any time if you have a stable job, expect to stay in the area long-term, and can weather a 7-10 year recession.

2. 💰 Using a mortgage calculator to compare current rent with potential homeownership costs, including tax benefits, can reveal financial advantages of buying a smaller home.

3. 🔒 Fixed mortgage payments provide stability during economic downturns, while rents may increase due to high demand during periods of unemployment and foreclosures.

4. 🏘️ Purchasing a home cheap enough in a desirable area allows for the option to rent it out and cover payments if personal circumstances change.

5. 🧠 Homeownership provides stability and freedom from stress about rent increases or eviction, potentially leading to wealth creation and fostering an environment for innovative thinking.