Total consumer debt hit a fresh new high in the first quarter of 2023, pushing past $17 trillion even amid a sharp pullback in home borrowing. According to a report from the New York Federal Reserve, the total for borrowing across all categories hit $17.05 trillion, an increase of nearly $150 billion, or 0.9% during the January-to-March period. That took total indebtedness up about $2.9 trillion from the pre-Covid period ending in 2019.
In this episode of The Higher Standard, Chris and Saied examine this news and determine the effect it will have on the economy as a whole.
They discuss news that famed short-seller Michael Burry and his hedge fund, Scion Asset Management, snapped up 150,000 shares of First Republic prior to its purchase by JP Morgan, worth about $2 million at the end of the first quarter.
Chris and Saied look at A Gallup poll indicating that 36% of US adults say they have a “great deal” or a “fair amount” of confidence that the Federal Reserve chairman would do or recommend the right thing for the economy, a precipitous drop which is now at or below his predecessors’ as the central bank wages its war against inflation.
They also offer some thoughts on recently-released Federal Reserve data, showing that deposits at U.S. banks climbed to $17.16 trillion in the week ended May 3, up about $67 billion, ticking up from the lowest level in nearly two years while bank lending was little changed at a record level.
Join Chris and Saied for this fascinating and informative conversation.
What You’ll Learn in this Show:
- Why inflaton in Argentina has sped up to 109% as currency weakens before the election.
- The three steps to a Federal Reserve pivot.
- Why Warren Buffett and Michael Burry are doubling down in the banking sector.
- Why the FOMC needs to see inflation going down on a fast enough trend.
- And so much more...
"With $1B in back rent due, LA landlords struggle to survive" (The RealDeal via Instagram)
"Consumer debt passes $17 trillion for the first time" (CNBC via Instagram)
"Michael Burry loaded up on bank stocks during the banking crisis" (Bloomberg Business via Instagram)
"Confidence in Jerome Powell has plunged to a record low" (Bloomberg Business via Instagram)
"What happens when the prophecy of the blockchain fails?" (Bloomberg Business via Instagram)
"A problem for the housing market: People won’t quit their cheap mortgages" (The Washington Post)