Wells Fargo Cutting Credit Is The Tip of The Iceberg

DerekJohnson

https://www.youtube.com/watch?v=yjBdu2JBYSM

ntxduck

lol

DerekJohnson

ntxduck said:

lol

I take it "lol" means you completely disagree?

ntxduck

DerekJohnson said:

ntxduck said:

lol

I take it "lol" means you completely disagree?

Yes. Doomsayer is the easiest job there is. No one remembers the hundreds of times you were wrong. Just the one time you were right. This dude, zerohedge, etc have been predicting doom since 2010. How much money would you have left on the table sitting out since then?

There’s plenty of red flags to keep an eye on. A shitty bank cutting an unprofitable product because their liquidity is limited isn’t one

Fenderbender123

He might be on to something, but Wells Fargo is restricted by the fed unlike other banks, so it's hard to point to a decision they have made and say this is a sign of things to come in the entire banking industry.

Worth keeping an eye on, but I wouldn't be too hasty in drawing conclusions.

RaceBannon

I had this story a week ago

Doog_de_Jour

I remember reading that they closed their student loan business too. While a huge dick move from the POV of consumers, it seems like they’re trying to reduce their risks.

Banks are like cell phone carriers and insurance companies…utter pricks.

greenblood

I read somewhere that a higher percentage of homeowners are behind on their mortgage than in 2008. If that’s true, it could get bad.

spuden

greenblood said:

I read somewhere that a higher percentage of homeowners are behind on their mortgage than in 2008. If that’s true, it could get bad.

It’s not true.

https://www.mba.org/2021-press-releases/may/mortgage-delinquencies-decrease-in-the-first-quarter-of-2021

As of 1st quarter of 2021 delinquency rate was around 6%. It’s lowered to 4.7% as of April 2021.

Also see this chart detailing the delinquency rate for residential single-family homes…looks like a molehill compared to 2008-2009.

https://fred.stlouisfed.org/series/DRSFRMACBN#0