The Half Truth: First Ever US 50:1 Stock Split, More Stock Market Mania.

In this Weeks episode of tackling the news media problem of only giving half of the truth behind the stories they write.  We discuss Credit Card debt, Private Equity, Defaults, 60/40 portfolios and for the first time ever a 50 to 1 stock split.  Enjoy!

https://apnews.com/article/chipotle-stock-split-nyse-9dc26a24bf5c356a188a992fff0ca2ca

In an announcement Tuesday, the burrito chain lauded the proposed split as one of the biggest in New York Stock Exchange history — while noting it believed the move would also boost accessibility of the company’s stock.

“This is the first stock split in Chipotle’s 30-year history, and we believe this will make our stock more accessible to employees as well as a broader range of investors,” Jack Hartung, Chipotle’s chief financial and administrative officer, said in a prepared statement.

But despite approval from its board of directors, the split isn’t set in stone just yet. Chipotle still needs the greenlight from shareholders, which is expected in June.

https://www.newyorkfed.org/newsevents/news/research/2024/20240206

NEW YORK—The Federal Reserve Bank of New York’s Center for Microeconomic Data today issued its Quarterly Report on Household Debt and Credit. The report shows total household debt increased by $212 billion (1.2%) in the fourth quarter of 2023, to $17.50 trillion. The report is based on data from the New York Fed’s nationally representative Consumer Credit Panel.

The New York Fed also issued an accompanying Liberty Street Economics blog post examining the composition of auto loan balances and performance by age and income. The Quarterly Report also includes a one-page summary of key takeaways and their supporting data points.

“Credit card and auto loan transitions into delinquency are still rising above pre-pandemic levels,” said Wilbert van der Klaauw, economic research advisor at the New York Fed. “This signals increased financial stress, especially among younger and lower-income households.”

Mortgage balances rose by $112 billion from the previous quarter and stood at $12.25 trillion at the end of December. Balances on home equity lines of credit (HELOC) increased by $11 billion, the seventh consecutive quarterly increase after Q1 2022, and now stand at $360 billion. Credit card balances increased by $50 billion to $1.13 trillion. Auto loan balances rose by $12 billion, continuing the upward trajectory seen since 2020, and now stand at $1.61 trillion.

https://finance.yahoo.com/news/heres-much-keep-stocks-bonds-205122372.html

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