Hassett Boasts of Record Credit Card Spending as Delinquencies Soar

💡 Hassett boasts of record credit card spending, but delinquencies are rising.

The US economy is experiencing a surge in credit card spending, according to National Economic Council Director Larry Kudlow's chief economic advisor, Kevin Hassett. Hassett boasted that credit card spending is 'through the roof,' but this growth comes amid a concerning trend: delinquencies are climbing. Farm bankruptcies have also jumped 46% year-over-year, exacerbating the economic uncertainty.

Credit Card Delinquencies Rise

The National Credit Card Delinquency Rate has been steadily increasing over the past year, with the latest numbers showing a 3.2% increase in delinquency rates. This represents a significant jump from the previous year's rate of 2.4%. The surge in delinquencies is a cause for concern, as it may indicate that consumers are struggling to keep up with their debt obligations.

Farm Bankruptcies Soar

The surge in farm bankruptcies is a worrying sign for the agricultural sector. With 46% more farms declaring bankruptcy year-over-year, it's clear that the economic pressures on farmers are mounting. This increase in bankruptcies could have far-reaching consequences for the broader economy, including higher food prices and reduced economic output.

Credit Card Spending Continues to Rise

Despite the concerns surrounding delinquencies, credit card spending continues to surge. Hassett's boasts of record spending are not unfounded, as the data shows a significant increase in credit card usage. However, this growth must be viewed in the context of rising delinquencies and farm bankruptcies.

What It Means for Investors