Game over pic.twitter.com/2LvKu0YXdN
— zerohedge (@zerohedge) October 4, 2023
The median income last year was $74,580 compared with $76,330 in 2021, according to the Census Bureau.
The 2.3% drop in incomes was the most since 2010.
It was the third-straight annual decline.
— unusual_whales (@unusual_whales) October 5, 2023
US Consumers Are Headed Down ‘A Death Spiral’
DoubleLine Capital’s Jeffrey Gundlach warns of a potential economic decline in 2024 and foresees Americans facing severe financial challenges. He criticized the excessive government stimulus, stating it inevitably led to inflation. Gundlach highlighted the unsustainable rise in credit card spending, describing it as a “death spiral” for personal finances. He also noted that traditional economic indicators predict increased market volatility, with an inverted yield curve and stagnant unemployment rate.
Coping with inflation caused by Federal spending (and excessive Fed stimulus) is difficult and eventually consumer max out their credit cards. Like now!
Credit card useage nosedived by -10.8% in September, according to Citi. This is the fifth straight month of spending decleration.