American Express appears to be quietly slashing customers' credit limits, a bad sign for borrowers and a warning that the economy is weakening.

• Cardholders are posting letters showing their limits were cut, with no change on their end.
• American Express only says it constantly reviews accounts, but the last big rounds of cuts came before 2008 and before COVID.
• Banks cut limits when their own risk models turn scary, so this says more about the economy than about any one customer.
• Missed payments are expected to climb into the holidays as high diesel prices push food costs up again.
• Anyone relying on an untouched credit line should assume it can be pulled without warning.

Outlook: Expect more limit cuts, rising defaults, and more small business closures over the next few months.