AmEx Fears Second Joblessness Wave After No-Layoff Vows Expire

[Anonymous]

https://www.msn.com/en-us/money/companies/amex-fears-second-joblessness-wave-after-no-layoff-vows-ex...

The firm has pulled back on adding new credit-card customers because it can’t get a clear picture of consumers’ financial health and employment trends.

[CreditCuriosity]

Ya saw that as well just got another amex business card although seen some strong profile and high income earners with no current amex cards being declined recently..  Risk/reward type situation is economy comes back strong in 3rd/4th quarter as many economist believe it will of hurt Amex's bottom line if the opposite they saved alot in charge-offs.  Only time will tell..  Market is doing very well and job #'s were WAY lower than expected in may coming in at 2.x mill vs predicted 9 million so maybe the economy is bouncing back quicker than expected.  Time will tell as always.  fundamentally before cv-19 the economy was very strong and forced to close down due to it now it is about how many of those jobs still exist towards the end of the year and next when it goes into full swing again..

[RickNATL]

https://www.doctorofcredit.com/american-express-pulls-back-on-adding-new-credit-card-customers-due-t...

[Anonymous]

Looks like I'll be waiting even longer before I try my luck. Oh well, on the positive side, this pandemic is making me want to take the slow and steady route for my rebuild, which honestly is probably better in the long run. Silver lining I guess! 

Hopefully by December they will be able to "get a clear picture of consumers financial health and employment trends" 

[Anonymous]

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@CreditCuriosity wrote:

Market is doing very well and job #'s were WAY lower than expected in may coming in at 2.x mill vs predicted 9 million so maybe the economy is bouncing back quicker than expected.  Time will tell as always.  fundamentally before cv-19 the economy was very strong and forced to close down due to it now it is about how many of those jobs still exist towards the end of the year and next when it goes into full swing again..

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I think AMEX is seeing the same things we've been paying close attention to at my company. Statements like these from various CEOs:

“We were quickly able to take out significant costs and we are being very conservative about what costs we turn back on,” Chief Executive Officer Mary Barra said during an investor event with Credit Suisse. “I believe we will come out of this with a lower cost structure that is permanent.”

That's just the corporate speak version of what many Americans are saying about their own spending right now. "We’ve found things that we don’t need to do and things we can do more efficiently,” Barra said."

Only time will tell if everyone - companies and individuals alike - falls back into their previous spending habits. "Old habits die hard."

[CreditCuriosity]

Agree all companies are cutting the fat and expense mine being one of them a well. Just thankful I am in IT which is a fairly safe field to be in.  I think the economy will come back strong once all the fun things the US i going through, but with that said companies will be more lean and streamlined which mean less jobs ultimately.  With that said new companies will come about from this as well to hopefully gobble up the employment pool.  Just gotta hang in for a few months imho get through CV-19, current events going on in the US and ultimately the election and hopefully once all those are done some normalness will come back whomever wins, etc...

[Anonymous]

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@CreditCuriosity wrote:

Agree all companies are cutting the fat and expense mine being one of them a well. Just thankful I am in IT which is a fairly safe field to be in.  I think the economy will come back strong once all the fun things the US i going through, but with that said companies will be more lean and streamlined which mean less jobs ultimately.  With that said new companies will come about from this as well to hopefully gobble up the employment pool.  Just gotta hang in for a few months imho get through CV-19, current events going on in the US and ultimately the election and hopefully once all those are done some normalness will come back whomever wins, etc...

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Good point about it being an election year as well. I also work in a safe field - software developer in the Industry 4.0 field, primarily machine analytics. It's similar to what FICO does, only we try to predict machine failure vs. human failure. It's a lot easier when the robots can't file a complaint about their rating. lol

About 25% of our business is automotive related, and the shift to electric is creating some decent opportunities for a lot of people. Also power generation.

I'm more hopeful today than I was in March.

[UpperNwGuy]

Doctor of Credit reports that Amex has announced it is cutting back on approving new credit cards because of the uncertain state of the economy.  He cites a Bloomberg News article.  Thoughts?

[Anonymous]

Regardless of whether it prevents me from getting a card I might want, I think it is prudent for the company.

Just my opinion but I think the outlook for the second half of 2020 is going to be very tough on Main Street.

Low wages for many people, no wages for many others, and there will have to be higher taxes to come for the middle class for both literal and figurative clean up.

[Citylights18]

I was just approved for one and its sitting in my digital wallet.