Crypto And Gold Vs Wall Street: Is Now The Best Time To Invest?

Social Security, Household Incomes, and Unemployment VS Inflation

Household incomes have expanded twice as fast as consumer prices since the February 2020 cycle peak. Although prices are rising, it is not yet pricing consumers out. Inflation competes with household incomes, and if it outpaces rising incomes, then the Fed may finally register that inflation is out of control. This is especially true if those on unemployment return to the workplace and accept lower incomes. The widespread impact of a lower household income could potentially tip the scales even further, especially because it appears these high prices are here to stay.

Wells Fargo Shuts Down Personal Lines of Credit

Wells Fargo announced last week that they are shutting down all personal lines of credit. This comes as a total shock to the financial industry. This shutdown will damage all credit lines, whether customers have a spending limit of $3,000 or $100,000.

This is not the first scandal Wells Fargo has to deal with, however. In 2016, bank employees fabricated millions of unnecessary accounts to hit sales goals. This was such an aggressive move that the Federal Reserve unusually stepped in to constrain the bank’s balance sheet in 2018.

The bank’s latest move has both Senator Warren’s and individual customers’ outrage.

Wells Fargo is yet to respond to Warren’s comments or disclose why customer credit scores will be penalized as a result of their actions. They only mentioned that they are working with their customers for the next 60 days to assist with their closing lines of credit. The bank stated:

“In an effort to simplify our product offerings, we’ve made the decision to no longer offer personal lines of credit as we feel we can better meet the borrowing needs of our customers through credit card and personal loan products.” (CNBC)

By eliminating personal lines of credit, Wells Fargo is affecting any and all customers who do business with them. This is also a strange move considering that the entire banking industry is looking to improve loan growth. Additionally, this sudden rug pulled out from under customers’ feet is costing Wells Fargo business as unaffected customers voice that they no longer trust the company.

This move calls into question if there’s smoke, is there a fire? Why does it seem like companies are setting up major defenses unless they see something the Fed doesn’t?

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Disclaimer: This article is not meant to serve as professional economic advice. Any action you take upon the information from this article and website is strictly at your own risk.

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Almoni33 3 months ago Member's comment

total clutter

Alexis Renault 3 months ago Member's comment

How so?

Almoni33 3 months ago Member's comment

obviously - no trading plans or graphical analysis, just dust in the eyes and fog and muddy water to go with it