Credit Card And Auto Loan Delinquencies On The Rise - What Investors Need To Know
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Transcript
00:00 All right, now one thing I did want to point to also,
00:02 and you just pointed to maybe seeing slowdown.
00:05 I wonder if that's going to come with also
00:06 maybe some credit card delinquencies.
00:09 This is also from Q2, of course, about a month old data.
00:14 We'll get some new data up soon,
00:16 but you guys can see the delinquencies here
00:18 and the new credit card starting to jump.
00:21 And another thing that we've been seeing
00:22 and hearing about is auto loan delinquencies.
00:25 We're at 7.3% in Q2.
00:28 Now, mortgage delinquencies are remaining low.
00:32 We kind of know what that is from, right?
00:34 The low interest rates that they got in the first place.
00:37 - Yeah, they're paying that one.
00:39 - Yeah, they're paying that one.
00:40 But the car loans, those are starting to struggle.
00:44 Credit cards are really starting to struggle.
00:47 So I wonder, is this starting to really show that slowdown?
00:51 - I think the big ticket stuff is going to hurt.
00:53 And again, housing has got to pass
00:55 because we know everybody's locked in
00:57 and the supply is down.
00:58 So that's why housing,
01:00 but even the home builders
01:01 are starting to take a hit here lately.
01:02 So the numbers are still fine, but then they hit Lanara.
01:05 They did buy the dip on Lanara,
01:06 but they did hit it on decent numbers.
01:08 But I keep thinking like this GM and Ford strike,
01:11 and we can talk about this.
01:12 And the UAW is talking about record profits,
01:15 record profits, we want a piece of that action.
01:17 But you know what?
01:18 Automotive industry is very cyclical.
01:21 And we were at the top of the cycle.
01:24 I think we are going to fall off a cliff
01:26 because I think there's gonna be a lot of people
01:27 who cannot afford new cars.
01:29 To the Cox Automotive gentlemen
01:31 that we showed on the show a week ago,
01:33 50% of people are priced out of the new car market, 50%.
01:37 So I mean, you lose a lot of potential customers there.
01:40 Now, a lot of those potential customers
01:41 maybe weren't there in the first place,
01:43 but there is definitely a lot of people
01:45 who are going to have less money than they did
01:48 when interest rates are this high.
01:49 And you get those big ticket stuff.
01:51 We saw ENPH, a financing play.
01:54 That stock just cannot catch a bid.
01:56 You certainly see the airlines,
01:58 these are expensive things going on trips
02:00 where people all went on their trips.
02:01 Now, are they all of a sudden gonna start
02:03 curtailing their expenses?
02:04 We don't know.
02:05 A lot of this fuel airline sell off
02:06 is because of fuel prices.
02:08 So maybe demand does stay high,
02:10 or maybe the consumer starts to get more stretched
02:12 and saying, we'll put that trip off for a few months
02:15 or next year, because we're just a little bit stretched
02:17 for cash right now.
02:18 We'll put that trip off until they lower rates next year.
02:21 What if they don't lower rates next year?
02:23 What if rates stay high?
02:24 Are you prepared for that consumer?
02:26 I don't know if the consumer is.
02:28 Lots of things to worry about in this rosy stock market.