Capital One Financial Corporation

Friedberg support ×2 ▼ on 🌍 Consumer credit bubble bursts into a credit crisis E103 · 2022-11-05 ▶ 44:56

It's just alarming statistics because if most people have most of their personal net worth tied up in their home asset and their home values are declining or going to decline, and we're seeing this dramatic spike in consumer credit in the US, it paints a really ugly picture for the next two years.

Jason support ×2 ▼ on 🌍 Consumer credit bubble bursts into a credit crisis E98 · 2022-10-01 ▶ 35:48

But then the person whose variable interest mortgage just kicked in has $500 less a month in savings, so they're now not going to buy an iPhone 14 They're not going to upgrade their car every six years.

Chamath support ×2 ▼ on 🌍 Consumer credit bubble bursts into a credit crisis E98 · 2022-10-01 ▶ 28:16

When those things reset, they're going to reset two, three hundred basis points higher. Their monthly payments are going to go nuclear.

Chamath brush_off ×2 ▼ on 🌍 Consumer credit bubble bursts into a credit crisis E91 · 2022-08-13 ▶ 44:46

I mean, I just think that there is, like, Friedberg has his pet issue, I have my pet issue, Sacks has his pet issue. You ask 100 economists, they'll have their own pet issue, housing affordability, whatever it is. The point is, we have 100 whack-a-mole problems.

Friedberg support ×3 ▼ on 🌍 Consumer credit bubble bursts into a credit crisis E91 · 2022-08-13 ▶ 41:36

And I've mentioned this multiple times now that it's the thing I would watch most closely. While there are core elements of the current economy that look strong, there are real concerns around whether consumers can keep up with their debt payments in the months and quarters ahead.

Friedberg support ×2 ▼ on 🌍 Consumer credit bubble bursts into a credit crisis E90 · 2022-08-05 ▶ 27:56

US consumer credit is a problem. We just had the largest number of new credit card accounts open since 2008 in Q2 from the New York Fed report yesterday.

Friedberg support ×1 ▼ on 🌍 Consumer credit bubble bursts into a credit crisis E87 · 2022-07-14 ▶ 58:39

There are some of those events brewing, right? We've talked about the consumer credit risk. We talked maybe Taiwan, maybe this emerging market crisis that may kind of be emerging.

Chamath support ×2 ▼ on 🌍 Consumer credit bubble bursts into a credit crisis E87 · 2022-07-14 ▶ 45:46

And so where is the stopping and the slowing down of spending? It just may be reflexively this thing where everybody feels like to be, you know, to have the polite dinner conversation. They have to talk about how they're pulling back.

Chamath oppose ×2 ▼ on 🌍 Consumer credit bubble bursts into a credit crisis E80 · 2022-05-13 ▶ 21:42

All I'm saying is it's not like excess credit is being built up in the system abnormally by consumers.

Sacks support ×3 ▼ on 🌍 Consumer credit bubble bursts into a credit crisis E80 · 2022-05-13 ▶ 12:45

And frankly, I think the consumer in general, that's the next shoe to drop here. ... Credit card debt now has all of a sudden skyrocketed.

Friedberg support ×3 ▼ on 🌍 Consumer credit bubble bursts into a credit crisis E80 · 2022-05-13 ▶ 1:33:33

I really think we're going to run into a consumer credit bubble here. ... if we actually do hit a recession and we don't see real wage growth and the consumer credit bubble continues to grow, we're going to face a credit crisis and call it nine to, you know, nine months to a year