why oh why is the consumer so strong https://twitter.com/zerohedge/status/1626277634400301058/photo/1
Discussion
Trying to better understand the title of the graph..
What does percent of balance mean? If people aren’t paying student loans because they froze, wouldn’t the balance of the loan stay the same?
Will zap ⚡️ 1000 sats to whoever helps me properly understand this graph. I don’t get why the drop in student loans since they’re frozen. If the line represents percentage balance and no one is paying, wouldn’t it stay the same?
#[0]
With freezing loan payments, it is obvious that the percentage of default on these loans drops ;-)
Ohhh so this isn’t showing outstanding balances on the loans? The term “balance” in “percent of balance” is what’s throwing me off. So this is just what percentage of the population is defaulting on different loan types?
I would guess he's saying that the consumer is strong b/c money that would otherwise go to student loans (forgiven) has been going to other places (consumption)?
Correct I just didn’t get the percent of balance because in my head the balance would stay the same. He helped clear it up! I’ll still zap ya some sats⚡️ followed!