Is everyone enjoying Bidenomics?
Rising debt means more would-be borrowers are getting turned down for loans
Half of Americans who applied for loans in the past two years were turned down, according to a new survey from the personal finance site Bankrate.com.
That finding comes at a time when banks have been tightening rules for lending money to consumers. Interest rates have spiked dramatically since 2022, as the Federal Reserve battles inflation.
According to the new Bankrate survey, the odds of getting approved for a loan today amount to a coin flip. Half of the applicants face denial, sometimes more than once. The survey, conducted by YouGov, covered 2,483 adults in January and February.
Unsuccessful borrowers most often reported getting denied a new credit card, or a credit-limit increase on an existing card. Others said they’d been turned down for personal or car loans.
Why?
Banks have been tightening credit in response to the Fed’s aggressive campaign to raise interest rates. Between March 2022 and July 2023, the Fed lifted its benchmark rate from essentially zero to over 5%, a 22-year high.
The Fed raised rates to counter inflation, which reached a 40-year high of 9.1% in June 2022.
“I think the reason why credit is tighter today is how quickly rates turned around and surged,” said Sarah Foster, a Bankrate analyst.
Meanwhile, the Biden regime continued to over-spend and borrow too much while also spending the money poorly, not directing it where it can truly help the economy recover after the Wuhan flu, for one thing.
Tighter credit has descended at a moment when many Americans are relying on borrowed funds to get by.
Roughly half of credit cardholders carry a balance from month to month, up from 39% in 2021, Bankrate reported in another recent survey. The nation’s collective credit-card balance now tops $1 trillion.
“You might feel like you need credit to be able to continue to afford day-to-day essentials,” Foster said.
And people are spending more for the basics of life, like food. Gas is higher. Energy costs are higher. And the Biden regime keeps finding ways to make all sorts of goods more expensive via regulations, and Democrat cities and states do the same. Illegal immigration is costing those same cities and states lots of taxpayer money which should go to American citizens. You elect Democrats, you get poor economic policies.
That’s odd….because they have been handing out loans to Illegal Aliens like candy; and those loans are government secured at that.
Those are all signs of a booming economy. You just aren’t smart enough to understand how good we have it. You should all have jobs making solar panels, EVs and OnlyFans.
American’s debt will not be allowed to increase? That is horrible! America needs more people living beyond their income.
Oil production in the USA is still setting rrcords. Energy prices are high because the oil price for all oil including that pumped in the USA is set by the friends of Trump, the Saudis. They are the same ones tenting his golf courses, he doesn’t give a f. What you must pay at the pump.
Inflation is Increasing slower than wages are going up. The repercussions caused by the Trump virus that killed 1 million Amdricans shattered the world economy The USA is receiving faster than ANY other highly developed country. The people who are still hurting the most are living in those poor red states, the same ones where they have the shortest life expectancy especially in Teach’s beloved rural areas.
Corporate profits are at all time highs.
8 of the top 10 states where people have the most personal debt are red states.
Businessinsider.com
May 17 2023
Sophia Ankle
“The states where people have the most personal debt, ranked”
Remember a kid in Cali working at a fast food restaurant is grossing 30k a year. Teach is that enough to buy a new Honda?
Tell me you don’t know anything about economics without saying you don’t know anything about economics! The esteemed Mr H wrote:
Does anyone expect “kids” to be able to buy new cars? I was like most people, able to buy only used vehicles until I was 47 years old!
Actually, at the time, I was looking for another used truck, when I went to Freedom Ford, in Hampton, Virginia, in early 2000. The salesman showed me what I needed, a full-sized truck with an extended — not full — cab, so that there was room enough for the rugrats as well, with something like 27,000 miles on it, for $19,000. I said, “For $19,000, you’ll sell me a new one, and he said, OK, and walked us — Elaine was with me — to the new trucks. Mrs Pico actually picked the one I bought, a 2000, cinnamon red (Toreador Red is the official name of the color) F-150, extended cab, V-6 with a 5-speed manual transmission.
The photo isn’t one of mine, but just shows the paint color.
It was quickly named cinnamon truck. Most of our cars and trucks get named. The girls cars are named Betty and Veronica. Elaine’s car is named Damn it, Janet, but, alas! my truck is just named Truck.
Cinnamin truck has 189+ miles on it when I traded it in for my 2010 dark grey F-150. The only reason I bought a new F-150 was because we had moved from the flatlands of Hampton Roads, Virginia, to snowy and hilly Jim Thorpe, Pennsylvania, and I needed four-wheel drive. I still have that truck, with 194,000 miles on it, and I see no reason to replace it.
Sorry Carbon boy-oil price is set OPEC, Russia and the US, not just the Saudis. But nice try, again. Are you going down this route like you did with your BS “Trump’s trillion dollar tax cuts for the elites”? You don’t learn very fast, do you?
Actually, the price of oil is constantly fluctuating from minute to minute because it is set by tens of thousands of pairs of willing buyers and willing sellers who agree among themselves what the price is for their individual transactions. Different qualities of oil often have different prices too, as well as oil from various locations. Oil from nearby gets a better price since buyers can pay less for transportation to refineries. Oil that is of good quality gets a better price because less refining is needed. But in the world Hairy lives in, everything is about Trump. And the economy is just swell even though Trump is is really in charge of global oil prices and is intentionally keeping prices high, but not as high as in 2021, when Biden moved into the White House.
No need to apologize jl
The whole world economy took a bad hit from that pandemic. The USA under Biden has recovered better than the other developed economies.
Who here is actually in favor of Americans taking in more debt, that they apparently can’t afford?
Opec+ is more accurate since Russia isn’t a member. However, since The Saudis control OPEC. The Saudis are the only ones that can dramatically increase or decrease their oil production thus forcing the world oil price up or down. All other countries are pumping close to their max. And yes their are differences in the prices of differently sources oils, depending on their value but all of their prices are pretty close. Well except for that shit from Canada that comes from the tar sands. But technically that really can’t even be called “oil”
The US can buy it cheap because Canada has no pipeline to the world market, the US can buy it cheap because they can’t sell it anywhere else. That is why they want the keystone XL built for them so it can be shipped to the world market through abygulf port.
No, the economy took a hit from the stupid policies enacted in reaction to the “pandemic.”
Exactly the point, knucklehead. Debt is for advancing — investing in a business, buying a home, car, or other major purchase. But with so many people buried in debt for day-to-day living because of unemployment and rising prices and worthless degrees, that investment is no longer possible.
Bullshit. We can do that too. We did it. But the price of oil started heading back up the day Pedo Pete was sworn in because he’s an idiot who does dumb things. Made funding the Ukraine war much cheaper for Putin.
Don’t you ever get tired of looking stupid and dishonest?
Johnny-doing other words the US, Russia and OPEC set the price of oil, as oil
“So in other words”