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Credit Card Defaults Hit Crisis Levels

US credit card defaults have surged to levels not recorded since the 2008 financial crisis, with lenders writing off $46 billion in bad debt during the first nine months of 2024.

The write-offs, tracked by BankRegData, represent a 50% jump from the previous year, highlighting growing strains on American consumers who collectively owe $170 billion in credit card interest payments.

“The bottom third of US consumers are tapped out,” Moody’s Analytics Chief Economist Mark Zandi told Forbes. “Their savings rate right now is zero.”

You can read more on the matter here.

What’s going on?

• Canada to Start Tracking Gig Workers’ Income Under New Tax Rules (theDeepDive)

• Real estate industry sees sixth straight month of GDP growth as falling interest rates drive activity (TS)

• Mexican Tequila Industry Faces Glut, Trade Threats as Demand Slows (theDeepDive)

• Chief electoral officer wants crackdown on ballot-related protests (Globe)

• Hertz Slashes Prices on Electric Vehicles Rented From Its Fleet (theDeepDive)

• Feds promised to test a new 'automatic' tax filing service — but recycled an old program (CBC)

• Supply Chain Risk Looms Over French-Mongolian Uranium Venture (theDeepDive)

• Oil prices rise on China optimism as investors return after holiday (Globe)

• PayPal Honey Under Fire for Allegedly Cheating Consumers and Creators (theDeepDive)

• US Initial Jobless Claims Fall to Eight-Month Low to End 2024 (Bloomberg)

What’s the latest?

• Mortgage: Mortgage application volume dropped 21.9% for the two weeks ending Dec. 27, 2024, as 30-year fixed mortgage rates rose to 6.97% from 6.89%, according to the MBA. Refinance applications fell 36% in the same period but were still 10% higher year-over-year, while purchase applications declined 13%, down 17% annually. The refinance share of activity decreased to 39.4%, and December’s seasonally adjusted figures highlight continued housing market weakness. Mortgage rates began the week above 7%, adding further pressure to demand.

• Tesla: Tesla's Q4 2024 deliveries totaled 495,570, down from analyst expectations of 504,770, marking the company's first annual drop in deliveries (1.79M in 2024 vs. 1.81M in 2023). Tesla's stock fell 7% following the report, despite a 63% rally in 2024. The company faces increased competition globally, declining European sales (-14% YTD), and slower growth in China, while inventory challenges persisted, particularly for the Cybertruck.

• Crypto: Cryptocurrencies started 2025 with gains as Bitcoin rose 1% to $96,283.33, bringing its year-to-date increase to 2.75%. The CoinDesk 20 index climbed 3%, led by Solana with a nearly 7% rise, while crypto stocks Coinbase and MicroStrategy gained 3% each. Investors anticipate a favorable regulatory environment and potential crypto-focused legislation under President-elect Trump, alongside interest in IPOs and a strategic Bitcoin reserve. Despite sliding late in 2024, Bitcoin ended the year over 120% higher, fueled by a post-election rally above $100,000.

• Airbus: Airbus delivered approximately 760 aircraft in 2024, narrowly missing its annual target. December deliveries alone reached nearly 120, with the final tally potentially subject to slight adjustments.

• Energy: Constellation Energy Corp. secured over $1 billion in contracts with the US government, including a 10-year, $840 million deal to deliver over 1 million megawatt-hours of electricity annually and $172 million for energy savings projects at five GSA facilities. The contracts will fund capacity upgrades at the company's nuclear fleet. Shares rose 6.2% following the announcement.

Silver’s 2024 performance w/ Keith Neumeyer

The stock market and stuff

• Tesla Reports 495,570 Deliveries In Q4 (theDeepDive)

• U.S. dollar index hits more than two-year high as markets brace for Trump return (CNBC)

• New Post-Quantum Standards Will See Bitcoin’s Core Encryption Deprecated In 5 Years (theDeepDive)

• Constellation gets $1 billion in contracts to supply US government nuclear power (Reuters)

• Cameco Sees Production Halted At Inkai Joint Venture (theDeepDive)

In the juniors

• Jervois Turns to Rescue Deal to Survive Cobalt Price Plunge (theDeepDive)

• i-80 Gold Buys Time with Precious Metal Deferrals Amid Cash Crunch (theDeepDive)

• Gold Samples Stolen in Brazen Heist at Cerrado Gold Argentinian Subsidiary (theDeepDive)

• Verses AI Aims For Commercialization In 2025 As Early Atari 10K Data Is Released (theDeepDive)

• MustGrow Acquires NexusBioAg For $1.66 Million In Cash, Future Earn-Out Payments (theDeepDive)

FULL DISCLOSURE: Anfield Energy is a client of Canacom Group, the parent company of The Deep Dive. Canacom Group is currently long the equity of Anfield Energy. The author has been compensated to cover Anfield Energy on The Deep Dive, with The Deep Dive having full editorial control. Not a recommendation to buy or sell. We may buy or sell securities in the company at any time. Always do additional research and consult a professional before purchasing a security.