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The last time the personal savings rate was down at 3% were the years leading up to the great recession in 2008. Seems like a recession is coming, but I'm not convinced because I don't believe the Federal Reserve will tighten enough and do enough QT compared to the ECB and BOJ which have actually done a pretty good job with QT so far. Houses are actually more affordable overseas now, for a reason.
"Debt has surged over the past year due to inflation running near its highest pace in more than 40 years and amid rising interest rates ."
problem with credit card debt is sthat the interest rates will make those balances surge.
So in 2019 the credit card debt was higher than it was in 2018. https://www.cnbc.com/select/us-credi...0%20billion,11.
U.S. credit card debt hit an all-time high of $930 billion
Debt surpassed the $870 billion peak during the 2008 financial crisis
Credit card delinquency rates increased .16% from the prior quarter to 5.32%
Younger Americans (18 to 29) have a 76% higher delinquency rate than anyone else
Then the pandemic hit. The feeling was that the govt. handouts kept people afloat...and it maybe helped them to minimize their debt.....but eventually those handouts ran out. Then interest rates were hiked.
So inflation, incresed interest rates & the exponential impact of carrying debt from 2019....it will hurt.
But it is naive to think that before Biden debt was being well managed by Americans. It wasn't.
According to many people, economy was GREAT in 2019, people were doing better than ever....and yet the credit card debt hit an all time high.
The last time the personal savings rate was down at 3% were the years leading up to the great recession in 2008. Seems like a recession is coming, but I'm not convinced because I don't believe the Federal Reserve will tighten enough and do enough QT compared to the ECB and BOJ which have actually done a pretty good job with QT so far. Houses are actually more affordable overseas now, for a reason.
Most Lib voters, & some Indy's too, don't care about bad economic news, they've already proven that Nov 8th, 2022.
We've had the highest inflation in 40+ years, by definition...we're in a recession, >1/2 live paycheck to paycheck, housing is less affordable than ever, homelessness is rampant, we're $31T in debt, & less Americans are working than we had in 2000.
If you think credit card debt surging 15% will change Libs minds, this election didn't teach you anything.
Please pay closer attention & try harder to listen to what Lib voters are telling the World. WE coud alide into a depression next year, & they'll still vote Blue in 2024. Need proof? See Detroit.
This actually plays into the Democrats hands. The more people hurt, the easier it us to blame the wealthy, demand their "fair" share, and promise more free stuff.
And the voters will buy it hook, line, and sinker.
The problem for the GOP is that they never offered a plan to fix the economy.
The brilliant Democrat strategy was to deflect the election issues from debt, inflation, recession, and crime, to focus on abortion, MAGA, and manufactured fear like the boogeyman of "white supremecy".
The Democrats shook a loud, shiny rattle to distract the baby's focus from their dirty diaper. The diaper is still stinky and soiled and needs changing.
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