This is a YouTube video titled "Bank Credit Downgraded" containing a monologue or commentary discussing recent economic challenges including Moody's downgrading of mid-sized banks, global stock market declines, rising US consumer credit card debt, and upcoming inflation reports. The speaker analyzes the implications for the economy and mortgage rates as of September 4, 2023.
Moody's which reviews credit ratings for banks has just downgraded 10 mid sized banks due to profitability issues in quarter two of this year. Banks need profitability to then have capital to then loan out the money. So profitability issues big problem. China has downward economic news, their stock markets tanked. Europe downward economic news, stock markets tanking and US Credit. Consumer credit card debt just hit over a trillion dollars for the first time ever. It's the highest it's ever been. People are strapped all across the globe and this is right on the heels of the big US CPI inflation report tomorrow. That's the biggest market mover in the mortgage game right now. I think all this shows what I've been calling for for months or probably a year now that the economy is starting to show some cracks, it is starting to slow down. Eventually inflation reports will start to reflect hopefully starting tomorrow and that'll be a better trend for mortgage rates for the foreseeable future.
