Let's look at a few pieces of data that give us a sense of what has happened and what may happen to the consumer finance sector as a result of the global health pandemic.

First, a July 12 article in the Wall Street Journal provided data about what the banking industry is thinking as it relates to future loan losses. One can expect even more dramatic provisions once second quarter data is available. If you've ever wondered what a hockey stick curve looks like, your dream has come true (see the chart above from the FDIC).

Second, the accompanying Federal Reserve chart illustrates vanishing growth in consumer credit markets with a 20.25% decrease in April 2020 and a relative recovery to a 5.31% annualized decrease in May 2020. Yeah!

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