Average Deposits vs Credit Card Balance and recession via /r/wallstreetbets #stocks #wallstreetbets #investing
Average Deposits vs Credit Card Balance and recession
Looking strictly at BOA. for the 1st Quarter they are showing $1,056.10 (billion) in average deposits while the credit card outstanding is sitting at $78.4 (billion).
While many paid down CC debt (orange line) it's also showing a large increase in average deposits which seems to indicate that there is more income flowing into the banks and there is only a slight blip in the radar to credit card balance increase.
This really makes me rethink a recession. It seems more like post-depression where people are savings money mostly and socking it away for rainy days. Or there is a large transfer of wealth happening.
**EDIT ** To further add. 30+ and 90+ delinquency rates are growing. They are not as high as 1Q2021 but are growing steadily over the last 3 quarters. Additionally there was over 300k new credit card accounts opened in the last year.
Submitted July 05, 2022 at 08:05PM by merc123
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