The Federal Reserve Bank of New York just dropped a bombshell: US household debt has skyrocketed to an eye-watering $17.7 trillion. Brace yourselves, folks, because the financial storm is here, and it’s hitting hard!
First off, let’s talk numbers. That $17.7 trillion represents a jaw-dropping $184 billion increase, or 1.1%, from the previous quarter. We’re not just talking about a slight uptick here; we’re witnessing a financial tsunami sweeping across the nation.
Now, let’s delve into the nitty-gritty. Inflation is running rampant, driving up the prices of essentials like food and rent. American families are feeling the pinch, with household budgets stretched thinner than ever. It’s a vicious cycle: higher prices mean more borrowing on credit cards just to make ends meet.
And let’s not forget the pandemic elephant in the room. Since COVID-19 reared its ugly head, consumers have piled on a staggering $3.4 trillion in debt. That’s like pouring gasoline on a raging fire, folks. With interest rates soaring, it’s a debt trap that’s becoming harder to escape.
But wait, it gets worse. Instead of facing the music for their risky lending practices, banks are begging the #FED for a bailout. They want interest rates slashed, giving borrowers a lifeline to keep drowning in debt. But who’s left holding the bag? You guessed it – hardworking Americans, through inflation and potentially higher taxes.
And here’s the kicker: while some are maxing out credit cards left and right, others are left picking up the tab. It’s a cruel game of privatizing profits and socializing losses, and it’s everyday Americans who are getting the short end of the stick.
But the plot thickens! April’s retail sales have just thrown another curveball into the mix. Consumer spending pulled back more than expected, reflecting growing concerns that consumers are finally starting to crack under the pressure of higher interest rates and inflation. Retail sales were unchanged in April from the prior month, a disappointing figure considering economists had been expecting a 0.4% increase.
Sources:
Overdue Bills Are Rising With US Debt Delinquencies, Fed Survey Shows
April Retail Sales Disappoint. Consumers Are Pulling Back.
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— The Coastal Journal (@1CoastalJournal) May 14, 2024