The New CS Board

[jumanji0881]

It's all about the DEBT -
Capital One Expects Recession By Year-End, Hammered By Bad Debt Provisions: https://www.zerohedge.com/personal-finance/capital-one-expects-recession-year-end-hammered-bad-debt-provisions

My Comment: Things don't really get ugly until the recession starts and with 35 years of the Fed destroying the economy, the recession should be severe.

Excerpt:
Specifically, the write-off rate in the firm's US credit-card portfolio soared to 4.04% in this year's first three months ($1.7 billion), almost double the rate a year earlier, and the Virginia-based lender said provision for credit losses soared to $2.8 billion in the quarter ended March, up from $677 million a year ago.

The driver for that expected loss is simple - reality!

“We are assuming a material worsening of labor markets with the unemployment rate rising from today’s very low levels to above 5% by the end of 2023,” the CEO told analysts on a conference call.

“We are also assuming adverse effects from inflation and some further worsening of consumer profiles from the flip side of their extraordinary outperformance in the earlier period during the pandemic.”