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Every flight I am taking (with airfares 50% higher) is packed to the gills. Wanna go from Miami to LA? It's gonna cost $1000+, and every flight is booked solid.
Expensive restaurants (where entrees start at $70 a plate) are packed.
The roads are still jammed with SUVs that cost nearly $200 to fill up.
Many hotels are charging exorbitant rates and yet are sold out.
Food prices are through the roof, yet people are paying them.
Corporations are raking it all in.
Not to mention all the millions of people spending millions of dollars on overvalue real estate, with now 6% interest.
Seems to me like Americans have absolutely no problem with inflated prices.
'grudgingly paying them' is not the same as 'have no problem with'.
the average dollar amounts americans are paying to maintain status quo of the monthly living stuff - food, rent, power, gas, car gas etc means that much money is now removed from the consumer goods and services market. less meals out means less restaurants make and employ. less stuff bought means less stuff made, or imported, and hauled and retailed. This is alllllll bad.
we are doing the equivalent of watching a dam collapse in slow mo as water overtops it. And to add to the fun, the dam keeper is taking a sledge to the more resilient pieces of concrete. The worlds pain is entirely manmade and self inflicted as too many people worshiped at the church of 'orange man bad' and the reality is, when the US gets a cold, the world sneezes. The US is at present developing a case of pneumonia.
I never said that; what I'm saying is that MANY Americans are continuing to spend as though there's no inflation problem
define many? many could be 10.
look at the hard numbers...housing starts, mortgage apps etc are down as much as HALF from same time last year. That is the most expensive thing you can buy.
the second most expensive thing you can cars - are down by force if need bem and this am it was reported that new and used car loan delinquencies are rocketing.
third most thing - revolving debt - delinquencies are doubling each quarter. now plug that money into the rest of the US financial picture...where is it?
Which means you have money and have no idea how the other half lives.
I think you are all misunderstanding the OP's point. He's not saying that inflation doesn't impact the US consumer. But he is saying that thus far, they don't seem to be changing their behavior in response.
These people that live paycheck to paycheck - that paycheck covers mortgage payment, car payment, food, clothes, but also things like a family vacation, HBO and AppleTV and Netflix subscriptions, a weekly trip to Total Wine, etc etc. "paycheck-to-paycheck" just means they aren't saving. They weren't before and they aren't now.
look at the hard numbers...housing starts, mortgage apps etc are down as much as HALF from same time last year. That is the most expensive thing you can buy.
the second most expensive thing you can cars - are down by force if need bem and this am it was reported that new and used car loan delinquencies are rocketing.
third most thing - revolving debt - delinquencies are doubling each quarter. now plug that money into the rest of the US financial picture...where is it?
mortgage apps etc are down as much as HALF from same time last year.
That is due to rising interest rates. This is exactly the intent of the Fed: raise interest rates so people stop buying things like houses. Apparently it is working.
new and used car loan delinquencies are rocketing
revolving debt - delinquencies are doubling each quarter.
Unfortunately, that makes the OP's point - people are still buying things they can't afford
This is global as well. Central Banks around the world printed money and propped up the global economy.
Otherwise it would have crashed.
If the Fed created $15 trillion then it's the Fed that has to take it back.
Now you could look at the money supple but the Fed...darling agency, redefined the money supply(M-1) and recalculated it going back to 2020 so they obfuscated the true data.
$6 trillion of the $15 T has been spent. Consumed. They can't take it back.
mortgage apps etc are down as much as HALF from same time last year.
That is due to rising interest rates. This is exactly the intent of the Fed: raise interest rates so people stop buying things like houses. Apparently it is working.
new and used car loan delinquencies are rocketing
revolving debt - delinquencies are doubling each quarter.
Unfortunately, that makes the OP's point - people are still buying things they can't afford
no it doesnt. these are debts ALREADY incurred. I asked many times before in other threads, if you all of a sudden cannot afford the fixed bills you already have while working the same job, something else happened. meaning having the lights on and food on the table takes precedence over the mastercard bill and perhaps the ally financial car loan skips a month.
the amount of money that heads off to buy 'things' may be the same, but the 'things' have a different share of the pie. you do know that both walmart and target missed last quarter and have warned right? who here buys things from them?
in 2008 they beat into our heads that the home market - all facets - are the largest part of the economic engine. when it is approaching HALF...oooops
there is a reason cnn and msnbc have removed the economics block from the landing page. The only story about economics RIGHT NOW at CNN.com is a buried story on layoffs. top story? Trump... ITs hard to schll for Biden while reporting on facts affecting us now.
btw - the nations top banks have also reported that savings reserves are almost all gone across the population. so those PRETENDING this does not affect them, are coming to jesus in the next few months. I see a lot of high dollar campers and boats on the market.....
The 'heads up your bums' method of living, aint working.
I think you are all misunderstanding the OP's point. He's not saying that inflation doesn't impact the US consumer. But he is saying that thus far, they don't seem to be changing their behavior in response.
These people that live paycheck to paycheck - that paycheck covers mortgage payment, car payment, food, clothes, but also things like a family vacation, HBO and AppleTV and Netflix subscriptions, a weekly trip to Total Wine, etc etc. "paycheck-to-paycheck" just means they aren't saving. They weren't before and they aren't now.
humans like to maintain their status quo ...keep up with the jone's...... those that were paycheck to paycheck, are now maxing out credit....this bubble will fail, and maybe sooner than you think
and its not just individuals....its also small businesses...you know those that employ the MAJORITY of Americans
this situation, brought to you by the liberals, will destroy the economy
I think you are all misunderstanding the OP's point. He's not saying that inflation doesn't impact the US consumer. But he is saying that thus far, they don't seem to be changing their behavior in response.
These people that live paycheck to paycheck - that paycheck covers mortgage payment, car payment, food, clothes, but also things like a family vacation, HBO and AppleTV and Netflix subscriptions, a weekly trip to Total Wine, etc etc. "paycheck-to-paycheck" just means they aren't saving. They weren't before and they aren't now.
mortgage apps etc are down as much as HALF from same time last year.
That is due to rising interest rates. This is exactly the intent of the Fed: raise interest rates so people stop buying things like houses. Apparently it is working.
new and used car loan delinquencies are rocketing
revolving debt - delinquencies are doubling each quarter.
Unfortunately, that makes the OP's point - people are still buying things they can't afford
Another smart person in this thread, thank God!
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