Bloomberg Surveillance · Thursday, August 27, 2026
The current economic landscape is characterized by a significant wealth divide, with those invested in financial assets benefiting greatly from the AI boom and broader equity market surge since 2022. Conversely, those without such investments face higher interest rates on loans and credit cards, leading to increased defaults among lower-income groups.
“And, you know, certainly if you do not own financial assets in the midst of this period of a great boom, both on AI, but just the broader equity market since 2022, you've been left out in the cold.”
“Credit card defaults at the lower quartile have actually increased and their lines have have been cut in some cases. And of course, prime rates on credit cards have been elevated.”